Correlation Between ADDUS HOMECARE and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both ADDUS HOMECARE and OFFICE DEPOT 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 ADDUS HOMECARE and OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADDUS HOMECARE and OFFICE DEPOT, you can compare the effects of market volatilities on ADDUS HOMECARE and OFFICE DEPOT 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 ADDUS HOMECARE with a short position of OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADDUS HOMECARE and OFFICE DEPOT.
Diversification Opportunities for ADDUS HOMECARE and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ADDUS and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ADDUS HOMECARE and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT and ADDUS HOMECARE 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 ADDUS HOMECARE are associated (or correlated) with OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of ADDUS HOMECARE i.e., ADDUS HOMECARE and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between ADDUS HOMECARE and OFFICE DEPOT
If you would invest 12,300 in ADDUS HOMECARE on October 26, 2024 and sell it today you would earn a total of 100.00 from holding ADDUS HOMECARE or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
ADDUS HOMECARE vs. OFFICE DEPOT
Performance |
| Timeline |
| ADDUS HOMECARE |
| OFFICE DEPOT |
ADDUS HOMECARE and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADDUS HOMECARE and OFFICE DEPOT
The main advantage of trading using opposite ADDUS HOMECARE and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADDUS HOMECARE position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| ADDUS HOMECARE vs. ALBIS LEASING AG | ADDUS HOMECARE vs. UNITED RENTALS | ADDUS HOMECARE vs. TITANIUM TRANSPORTGROUP | ADDUS HOMECARE vs. SOEDER SPORTFISKE AB |
| OFFICE DEPOT vs. North American Construction | OFFICE DEPOT vs. AGRICULTBK HADR25 YC | OFFICE DEPOT vs. Suntory Beverage Food | OFFICE DEPOT vs. THAI BEVERAGE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |