Correlation Between ANSYS and Dayforce

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

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

Diversification Opportunities for ANSYS and Dayforce

0.03

Correlation Coefficient

ANSYS  Dayforce

Significant diversification

The 3 months correlation between ANSYS and Dayforce is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and Dayforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayforce and ANSYS 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 ANSYS Inc 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 ANSYS i.e., ANSYS and Dayforce go up and down completely randomly.

Pair Corralation between ANSYS and Dayforce

Given the investment horizon of 90 days ANSYS Inc is expected to generate 0.65 times more return on investment than Dayforce. However, ANSYS Inc is 1.53 times less risky than Dayforce. It trades about 0.18 of its potential returns per unit of risk. Dayforce is currently generating about -0.03 per unit of risk. If you would invest  32,489  in ANSYS Inc on May 5, 2025 and sell it today you would earn a total of  4,941  from holding ANSYS Inc or generate 15.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	82.54%
Values	Daily Returns

ANSYS Inc  vs.  Dayforce

ANSYS Inc

Risk-Adjusted Performance

Good

Over the last 90 days ANSYS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, ANSYS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dayforce

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ANSYS and Dayforce

The main advantage of trading using opposite ANSYS and Dayforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANSYS 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 ANSYS Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.