Ceridian HCM Holding Volatility
| CDAYDelisted Stock | USD 68.42 0.65 0.94% |
We have found twenty-nine technical indicators for Ceridian HCM Holding, which you can use to evaluate the volatility of the firm. Please confirm Ceridian HCM's Downside Deviation of 2.44, risk adjusted performance of 0.0113, and Mean Deviation of 1.8 to double-check if the risk estimate we provide is consistent with the expected return of 0.0%. Key indicators related to Ceridian HCM's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Ceridian HCM Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Ceridian daily returns, and it is calculated using variance and standard deviation. We also use Ceridian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ceridian HCM volatility.
Ceridian |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ceridian HCM can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Ceridian HCM at lower prices. For example, an investor can purchase Ceridian stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Ceridian HCM's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Ceridian Stock
Ceridian HCM Market Sensitivity And Downside Risk
Ceridian HCM's beta coefficient measures the volatility of Ceridian stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Ceridian stock's returns against your selected market. In other words, Ceridian HCM's beta of -0.33 provides an investor with an approximation of how much risk Ceridian HCM stock can potentially add to one of your existing portfolios. Ceridian HCM Holding currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ceridian HCM's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ceridian HCM's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Ceridian HCM Holding Demand TrendCheck current 90 days Ceridian HCM correlation with market (Dow Jones Industrial)Ceridian Beta |
Ceridian standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.0 |
It is essential to understand the difference between upside risk (as represented by Ceridian HCM's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ceridian HCM's daily returns or price. Since the actual investment returns on holding a position in ceridian stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Ceridian HCM.
Ceridian HCM Holding Stock Volatility Analysis
Volatility refers to the frequency at which Ceridian HCM delisted stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ceridian HCM's price changes. Investors will then calculate the volatility of Ceridian HCM's stock to predict their future moves. A delisted stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile delisted stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Ceridian HCM's volatility:
Historical Volatility
This type of delisted stock volatility measures Ceridian HCM's fluctuations based on previous trends. It's commonly used to predict Ceridian HCM's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Ceridian HCM's current market price. This means that the delisted stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Ceridian HCM's to be redeemed at a future date.Transformation |
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Ceridian HCM Projected Return Density Against Market
Given the investment horizon of 90 days Ceridian HCM Holding has a beta of -0.3308 suggesting as returns on the benchmark increase, returns on holding Ceridian HCM are expected to decrease at a much lower rate. During a bear market, however, Ceridian HCM Holding is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ceridian HCM or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ceridian HCM's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ceridian delisted stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Ceridian HCM Holding has an alpha of 0.011, implying that it can generate a 0.011 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Ceridian HCM Price Volatility?
Several factors can influence a delisted stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Ceridian HCM Stock Return Volatility
Ceridian HCM historical daily return volatility represents how much of Ceridian HCM delisted stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.0% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8025% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ceridian HCM Volatility
Volatility is a rate at which the price of Ceridian HCM or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Ceridian HCM may increase or decrease. In other words, similar to Ceridian's beta indicator, it measures the risk of Ceridian HCM and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ceridian HCM fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management software company in the United States, Canada, and internationally. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota. Ceridian Hcm operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 7462 people.
Ceridian HCM's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Ceridian Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ceridian HCM's price varies over time.
3 ways to utilize Ceridian HCM's volatility to invest better
Higher Ceridian HCM's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ceridian HCM Holding stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Ceridian HCM Holding stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Ceridian HCM Holding investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ceridian HCM's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Ceridian HCM's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ceridian HCM Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.8 and is 9.223372036854776E16 times more volatile than Ceridian HCM Holding. 0 percent of all equities and portfolios are less risky than Ceridian HCM. You can use Ceridian HCM Holding to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Ceridian HCM to be traded at $67.05 in 90 days.Good diversification
The correlation between Ceridian HCM Holding and DJI is -0.11 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ceridian HCM Holding and DJI in the same portfolio, assuming nothing else is changed.
Ceridian HCM Additional Risk Indicators
The analysis of Ceridian HCM's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Ceridian HCM's investment and either accepting that risk or mitigating it. Along with some common measures of Ceridian HCM stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0113 | |||
| Market Risk Adjusted Performance | (0) | |||
| Mean Deviation | 1.8 | |||
| Semi Deviation | 2.4 | |||
| Downside Deviation | 2.44 | |||
| Coefficient Of Variation | 16956.31 | |||
| Standard Deviation | 2.31 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar delisted stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Ceridian HCM Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Ceridian HCM as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Ceridian HCM's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Ceridian HCM's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Ceridian HCM Holding.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Consideration for investing in Ceridian Stock
If you are still planning to invest in Ceridian HCM Holding check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Ceridian HCM's history and understand the potential risks before investing.
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