Automatic Data Processing Stock Volatility
| ADP Stock | USD 208.69 -1.97 -0.94% |
Over the designated horizon, Automatic Data Processing maintains a minimal volatility profile. Automatic Data Processing reports a Sharpe Ratio (Efficiency) of -0.18, suggesting weak return efficiency over the last 3 months. We found 23 technical indicators contributing to the current risk picture.
Sharpe Ratio = -0.185
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | ADP |
Automatic Data Processing (ADP) recorded a Market Risk Adjusted Performance of -0.5%, a Risk of 1.66, and a Risk Adjusted Performance of -0.2%. Monthly moving average analysis shows Automatic Data is not yet reaching its full return potential. Incorporating it into a well-diversified portfolio can enhance total return while reducing risk.
Key indicators related to Automatic Data's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Automatic Data's volatility is most commonly measured using the annualized standard deviation of daily returns. This statistical measure reflects the magnitude of Automatic Data's typical price swings and is a primary input in options pricing models.
Automatic | Build portfolio with Automatic Stock |
Volatility Strategy
Automatic Data Processing return fluctuations can modify its marginal contribution to total portfolio variance. Allocation size and correlation determine overall impact. Current statistical measures show total volatility near 1.66% with a beta coefficient of 0.64, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.18, evaluates return per unit of total risk. An alpha value of -0.28 reflects performance relative to systematic market exposure. Expected return estimates near -0.31% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Company-specific developments can alter return variability.
Main indicators related to Automatic Data's market risk premium analysis include:
Beta 0.64 | Alpha -0.28 | Risk 1.66 | Sharpe Ratio -0.18 | Expected Return -0.31 |
Moving together with Automatic Stock
| 0.89 | ALIT | Alight Inc | PairCorr |
| 0.8 | ASGN | ASGN Inc | PairCorr |
| 0.97 | BKNG | Booking Holdings | PairCorr |
| 0.79 | CNNEF | Canacol Energy | PairCorr |
Moving against Automatic Stock
| 0.93 | KO | Coca Cola | PairCorr |
| 0.85 | SEBC | Southeastern Banking Corp | PairCorr |
| 0.84 | AVIR | Atea Pharmaceuticals | PairCorr |
| 0.83 | PSGTF | PT Semen Indonesia Earnings Call This Week | PairCorr |
| 0.82 | PWDY | Powerdyne International | PairCorr |
| 0.74 | DTNOY | DNO ASA ADR | PairCorr |
| 0.68 | JOB | GEE Group | PairCorr |
| 0.68 | AMKBY | AP Moeller Maersk | PairCorr |
| 0.64 | PLMK | Plum Acquisition Corp | PairCorr |
| 0.6 | XTIA | XTI Aerospace | PairCorr |
Sensitivity To Market
Automatic Data Processing exhibits a beta of 0.64, representing its market-relative sensitivity based on regression modeling. Beta quantifies systematic risk by measuring the slope of asset returns against benchmark returns. Overall return volatility is approximately 1.66%.Volatility metrics for Automatic Data Processing describe how stable or unstable returns have been over the selected window. Current downside deviation is about 0.0%. Options markets imply a forward-looking volatility estimate near 39.0%. This indicates expectations for moderate future movement relative to historical averages. For Automatic Data Processing, price swings may be influenced by sector movement and company-specific headlines.
3 Months Beta |Analyze Automatic Data Processing Demand TrendCheck current 90 days Automatic Data correlation with market (Dow Jones Industrial)Downside Risk
The standard deviation of Automatic measures how widely its daily prices are dispersed around the mean for a given time period. Highly volatile instruments have large standard deviations; stable instruments have small ones.
Standard Deviation | 1.66 |
Standard deviation captures both upside and downside movement in Automatic Data. However, investors specifically concerned with loss potential should use downside deviation or semi-deviation of Automatic Data's returns. Automatic Data Processing (ADP) recorded a Maximum Drawdown of 6.80.
Using Automatic Put Option to Manage Risk Based on 2026-06-18 Contracts
Automatic Data Processing (ADP) recorded an Option Implied Volatility of 0.39 and an Option Max Pain Price of 210. Put options on Automatic Data serve as a defensive tool for investors who want to protect their position. By purchasing a put on Automatic Stock, the holder secures the right to sell at the strike price regardless of how far Automatic Data's drops.
Automatic Data's PUT expiring on 2026-06-18
Profit |
| Automatic Data Price At Expiration |
Current Automatic Data Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | ADP260618P00330000 | 0.0 | 0.0 | 3 | 2026-06-18 | 119.7 - 123.4 | 0.0 | View |
Put | ADP260618P00320000 | 0.0 | 0.0 | 6 | 2026-06-18 | 109.6 - 113.6 | 0.0 | View |
Put | ADP260618P00310000 | 0.0 | 0.0 | 61 | 2026-06-18 | 99.6 - 103.1 | 0.0 | View |
Put | ADP260618P00300000 | -0.988499 | 7.73E-4 | 155 | 2026-06-18 | 89.7 - 93.8 | 0.0 | View |
Put | ADP260618P00290000 | 0.0 | 0.0 | 246 | 2026-06-18 | 79.6 - 83.6 | 0.0 | View |
Put | ADP260618P00280000 | 0.0 | 0.0 | 113 | 2026-06-18 | 69.6 - 73.7 | 0.0 | View |
Put | ADP260618P00270000 | -0.987439 | 0.001139 | 131 | 2026-06-18 | 59.7 - 63.8 | 0.0 | View |
Put | ADP260618P00260000 | -0.957568 | 0.003337 | 54 | 2026-06-18 | 50.6 - 53.3 | 0.0 | View |
Put | ADP260618P00250000 | -0.922674 | 0.005575 | 73 | 2026-06-18 | 41.3 - 43.3 | 0.0 | View |
Put | ADP260618P00240000 | -0.823081 | 0.00883 | 72 | 2026-06-18 | 32.7 - 35.2 | 0.0 | View |
Put | ADP260618P00230000 | -0.724043 | 0.010979 | 178 | 2026-06-18 | 25.6 - 26.6 | 0.0 | View |
Stock Volatility Analysis
Automatic Data stock volatility is a measure of the speed and extent of Automatic Data's price movements. High volatility generally means the stock price moves dramatically up or down in a short period of time. Low volatility means Automatic Data's price does not fluctuate dramatically and tends to be more predictable.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Automatic Data Processing Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Projected Return Density Against Market
Considering the 90-day investment horizon Automatic Data has a beta of 0.6392 . This suggests as returns on the market go up, Automatic Data's average returns are expected to increase less than the benchmark. However, during a bear market, the loss from holding Automatic Data Processing is expected to be smaller as well.Investors in Automatic Data face systematic risk from overall stock market trends and unsystematic risk from company or sector-specific developments. Diversification reduces specific exposure, but macro-driven volatility persists. Beta remains a common sensitivity metric. Automatic Data Processing (ADP) recorded a Mean Deviation of 1.26, an Option Implied Volatility of 0.39, and a Standard Deviation of 1.62.
Predicted Return Density |
| Returns |
What Drives Automatic Data's Price Volatility?
Several factors can influence Automatic Data's market volatility:Industry Dynamics
Sector-level events can directly affect Automatic Data's price stability. Regulatory changes, supply disruptions, or shifts in demand within Automatic Data's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Automatic Data.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for Automatic Data's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Automatic Data. During periods of economic expansion, Automatic Data's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.Automatic Data's Company-Specific Factors
Volatility can also stem from events unique to Automatic Data. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Automatic Data's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Automatic Data's share price.Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Automatic Data is -540.63. The daily returns are distributed with a variance of 2.75 and standard deviation of 1.66. The mean deviation of Automatic Data Processing is currently at 1.28. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.2836 | |
β | Beta against Dow Jones | 0.64 | |
σ | Overall volatility | 1.66 | |
Ir | Information ratio | -0.156 |
Stock Return Volatility
Automatic Data return volatility captures the typical daily swing in stock returns relative to the mean over the selected period. The company has volatility of 1.6578% on return distribution over a 90-day investment horizon. Meanwhile, Dow Jones Industrial has volatility of 0.8248% on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
|
Risk-Adjusted Indicators
Evaluating Automatic Stock requires separating price momentum from underlying business quality relative to competitors. Without reviewing risk-adjusted indicators, investors may overweight recent returns and underweight the volatility required to achieve them. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PAYX | 1.37 | -0.35 | 0.00 | 1.50 | 0.00 | 2.51 | 7.54 | |||
| PH | 1.11 | 0.12 | 0.07 | 0.03 | 1.53 | 1.99 | 7.83 | |||
| LMT | 1.49 | 0.48 | 0.33 | 1.14 | 1.33 | 3.37 | 8.78 | |||
| GD | 1.16 | 0.12 | 0.09 | 0.09 | 1.47 | 2.21 | 7.72 | |||
| TT | 1.30 | 0.21 | 0.12 | 0.14 | 1.64 | 2.41 | 12.45 | |||
| MMM | 1.35 | -0.14 | 0.00 | -0.19 | 0.00 | 2.39 | 9.13 | |||
| NOC | 1.54 | 0.39 | 0.26 | 1.04 | 1.41 | 4.38 | 9.88 | |||
| DE | 1.45 | 0.33 | 0.23 | 0.32 | 1.24 | 4.09 | 15.39 | |||
| HON | 1.08 | 0.34 | 0.27 | 0.28 | 1.04 | 2.03 | 7.98 | |||
| UPS | 1.18 | -0.03 | 0.00 | 1.39 | 0.00 | 2.44 | 10.19 |
Risk Metrics, Assumptions & Methodology
Volatility for Automatic Data measures return dispersion and uncertainty over time. Observed drawdowns appear relatively moderate compared with broader market swings. Automatic Data has a market cap of 85.2 B, P/E of 35.6, ROE of 73.84%.
For Automatic Data Processing, this section uses periodic company reporting and market reference feeds with Macroaxis normalization rules applied to keep cross-asset comparisons consistent. Professional analyst research is incorporated when coverage is available. Intraday timing differences may exist. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Ellen Johnson - Member of Macroaxis Editorial BoardAutomatic Data Investment Opportunity
Automatic Data Processing is about 2.02 times more volatile than Dow Jones Industrial based on recent return behavior. That added volatility may be acceptable only if the position is expected to deliver stronger return efficiency or diversification value.You can use Automatic Data Processing to protect your portfolios against small market fluctuations. This directional read frames the latest price swing through a simple momentum and follow-through lens. It gives extra weight to the size of the move, the quote level, and whether the instrument trades in a hype-prone venue. a moderate downward daily trend and can be a good diversifier. Check odds of Automatic Data to be traded at $204.52 in 90 days.Modest diversification
The correlation between ADP and DJI is 0.2, which Macroaxis classifies as Modest diversification for the selected horizon. The overlap area represents the portion of risk that may be diversified away when both instruments are held together and nothing else in the portfolio changes.
Automatic Data Additional Risk Indicators
Looking at additional risk metrics for Automatic Data Processing frames how the position may behave under different market and portfolio conditions. This is most useful when investors want to understand whether the current opportunity is being paid for with reasonable risk.
| Risk Adjusted Performance | -0.16 | |||
| Market Risk Adjusted Performance | -0.52 | |||
| Mean Deviation | 1.26 | |||
| Coefficient Of Variation | -494.34 | |||
| Standard Deviation | 1.62 | |||
| Variance | 2.63 | |||
| Information Ratio | -0.16 |
Automatic Data Suggested Diversification Pairs
A pair strategy built around Automatic Data Processing is useful when investors want to reduce directional market exposure while still expressing a relative-value idea. Used properly, pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.
While pairing positions reduces portfolio risk, some forms of risk persist no matter which instruments are combined. No matter how well a pair is constructed around Automatic Data, market-wide risk remains. What pair trading can address is Automatic Data's unsystematic risk - the portion driven by company or sector-specific factors rather than broad market forces.
Additional Tools for Automatic Stock Analysis
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |