Correlation Between Automatic Data and Gex Management

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Can any of the company-specific risk be diversified away by investing in both Automatic Data and Gex Management 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 Automatic Data and Gex Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and Gex Management, you can compare the effects of market volatilities on Automatic Data and Gex Management 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 Automatic Data with a short position of Gex Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and Gex Management.

Diversification Opportunities for Automatic Data and Gex Management

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Automatic and Gex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing and Gex Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gex Management and Automatic Data 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 Automatic Data Processing are associated (or correlated) with Gex Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gex Management has no effect on the direction of Automatic Data i.e., Automatic Data and Gex Management go up and down completely randomly.

Pair Corralation between Automatic Data and Gex Management

If you would invest  0.01  in Gex Management on September 2, 2025 and sell it today you would earn a total of  0.00  from holding Gex Management or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Automatic Data Processing  vs.  Gex Management

 Performance 
       Timeline  
Automatic Data Processing 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Automatic Data Processing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Gex Management 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Gex Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Gex Management is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Automatic Data and Gex Management Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Automatic Data and Gex Management

The main advantage of trading using opposite Automatic Data and Gex Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data position performs unexpectedly, Gex Management 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 Gex Management will offset losses from the drop in Gex Management's long position.
The idea behind Automatic Data Processing and Gex Management 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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