Correlation Between Dayforce and BCE

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

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

Diversification Opportunities for Dayforce and BCE

-0.13

Correlation Coefficient

Dayforce  BCE

Good diversification

The 3 months correlation between Dayforce and BCE is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dayforce and BCE Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc Pref and Dayforce 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 Dayforce are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc Pref has no effect on the direction of Dayforce i.e., Dayforce and BCE go up and down completely randomly.

Pair Corralation between Dayforce and BCE

Assuming the 90 days trading horizon Dayforce is expected to generate 5.97 times less return on investment than BCE. In addition to that, Dayforce is 4.19 times more volatile than BCE Inc Pref. It trades about 0.03 of its total potential returns per unit of risk. BCE Inc Pref is currently generating about 0.64 per unit of volatility. If you would invest  1,571  in BCE Inc Pref on April 23, 2025 and sell it today you would earn a total of  389.00  from holding BCE Inc Pref or generate 24.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Dayforce  vs.  BCE Inc Pref

Dayforce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dayforce are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Dayforce is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

BCE Inc Pref

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in BCE Inc Pref are ranked lower than 50 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, BCE sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dayforce and BCE

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

The idea behind Dayforce and BCE Inc Pref 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.

Check out your portfolio center.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.