Correlation Between ATS P and Dayforce

Can any of the company-specific risk be diversified away by investing in both ATS P and Dayforce 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 ATS P and Dayforce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATS P and Dayforce, you can compare the effects of market volatilities on ATS P and Dayforce 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 ATS P with a short position of Dayforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATS P and Dayforce.

Diversification Opportunities for ATS P and Dayforce

0.22

Correlation Coefficient

ATS P  Dayforce

Modest diversification

The 3 months correlation between ATS and Dayforce is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ATS P and Dayforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayforce and ATS P 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 ATS P are associated (or correlated) with Dayforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dayforce has no effect on the direction of ATS P i.e., ATS P and Dayforce go up and down completely randomly.

Pair Corralation between ATS P and Dayforce

If you would invest (100.00) in Dayforce on April 7, 2025 and sell it today you would earn a total of  100.00  from holding Dayforce or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

ATS P  vs.  Dayforce

ATS P

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATS P are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, ATS P displayed solid returns over the last few months and may actually be approaching a breakup point.

Dayforce

Risk-Adjusted Performance

Insignificant

Over the last 90 days Dayforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Dayforce may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ATS P and Dayforce

The main advantage of trading using opposite ATS P and Dayforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATS P position performs unexpectedly, Dayforce 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 Dayforce will offset losses from the drop in Dayforce's long position.

The idea behind ATS P and Dayforce 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.