Correlation Between Ceridian HCM and Fernhill Corp

Can any of the company-specific risk be diversified away by investing in both Ceridian HCM and Fernhill Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ceridian HCM and Fernhill Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ceridian HCM Holding and Fernhill Corp, you can compare the effects of market volatilities on Ceridian HCM and Fernhill Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ceridian HCM with a short position of Fernhill Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ceridian HCM and Fernhill Corp.

Diversification Opportunities for Ceridian HCM and Fernhill Corp

0.0

Correlation Coefficient

Ceridian HCM  Fernhill Corp

Pay attention - limited upside

The 3 months correlation between Ceridian and Fernhill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ceridian HCM Holding and Fernhill Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fernhill Corp and Ceridian HCM is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ceridian HCM Holding are associated (or correlated) with Fernhill Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fernhill Corp has no effect on the direction of Ceridian HCM i.e., Ceridian HCM and Fernhill Corp go up and down completely randomly.

Pair Corralation between Ceridian HCM and Fernhill Corp

If you would invest (100.00) in Ceridian HCM Holding on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Ceridian HCM Holding or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ceridian HCM Holding  vs.  Fernhill Corp

Ceridian HCM Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ceridian HCM Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ceridian HCM is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Fernhill Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fernhill Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Ceridian HCM and Fernhill Corp

The main advantage of trading using opposite Ceridian HCM and Fernhill Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ceridian HCM position performs unexpectedly, Fernhill Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fernhill Corp will offset losses from the drop in Fernhill Corp's long position.

The idea behind Ceridian HCM Holding and Fernhill Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.