Correlation Between ADDUS HOMECARE and Phillips
Can any of the company-specific risk be diversified away by investing in both ADDUS HOMECARE and Phillips 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 Phillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADDUS HOMECARE and Phillips 66, you can compare the effects of market volatilities on ADDUS HOMECARE and Phillips 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 Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADDUS HOMECARE and Phillips.
Diversification Opportunities for ADDUS HOMECARE and Phillips
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ADDUS and Phillips is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ADDUS HOMECARE and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 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 Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of ADDUS HOMECARE i.e., ADDUS HOMECARE and Phillips go up and down completely randomly.
Pair Corralation between ADDUS HOMECARE and Phillips
Assuming the 90 days trading horizon ADDUS HOMECARE is expected to under-perform the Phillips. In addition to that, ADDUS HOMECARE is 1.19 times more volatile than Phillips 66. It trades about -0.04 of its total potential returns per unit of risk. Phillips 66 is currently generating about 0.3 per unit of volatility. If you would invest 10,806 in Phillips 66 on October 26, 2024 and sell it today you would earn a total of 916.00 from holding Phillips 66 or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADDUS HOMECARE vs. Phillips 66
Performance |
| Timeline |
| ADDUS HOMECARE |
| Phillips 66 |
ADDUS HOMECARE and Phillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADDUS HOMECARE and Phillips
The main advantage of trading using opposite ADDUS HOMECARE and Phillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADDUS HOMECARE position performs unexpectedly, Phillips 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 Phillips will offset losses from the drop in Phillips' long position.| ADDUS HOMECARE vs. ALBIS LEASING AG | ADDUS HOMECARE vs. UNITED RENTALS | ADDUS HOMECARE vs. TITANIUM TRANSPORTGROUP | ADDUS HOMECARE vs. SOEDER SPORTFISKE AB |
| Phillips vs. ADDUS HOMECARE | Phillips vs. CAIRN HOMES EO | Phillips vs. Lendlease Group | Phillips vs. bet at home AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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