Correlation Between Addus HomeCare and Blackstone
Can any of the company-specific risk be diversified away by investing in both Addus HomeCare and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addus HomeCare and Blackstone Group, you can compare the effects of market volatilities on Addus HomeCare and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and Blackstone.
Diversification Opportunities for Addus HomeCare and Blackstone
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Addus and Blackstone is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and Blackstone go up and down completely randomly.
Pair Corralation between Addus HomeCare and Blackstone
Assuming the 90 days horizon Addus HomeCare is expected to generate 2.79 times less return on investment than Blackstone. In addition to that, Addus HomeCare is 1.11 times more volatile than Blackstone Group. It trades about 0.03 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.09 per unit of volatility. If you would invest 7,167 in Blackstone Group on October 11, 2024 and sell it today you would earn a total of 9,633 from holding Blackstone Group or generate 134.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addus HomeCare vs. Blackstone Group
Performance |
| Timeline |
| Addus HomeCare |
| Blackstone Group |
Addus HomeCare and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and Blackstone
The main advantage of trading using opposite Addus HomeCare and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Addus HomeCare vs. Flutter Entertainment PLC | Addus HomeCare vs. Perseus Mining Limited | Addus HomeCare vs. ANGLO ASIAN MINING | Addus HomeCare vs. Monument Mining Limited |
| Blackstone vs. Corporate Office Properties | Blackstone vs. Addus HomeCare | Blackstone vs. ENVVENO MEDICAL DL 00001 | Blackstone vs. AVITA Medical |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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