Correlation Between Addus HomeCare and Hudson
Can any of the company-specific risk be diversified away by investing in both Addus HomeCare and Hudson 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 Hudson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addus HomeCare and Hudson, you can compare the effects of market volatilities on Addus HomeCare and Hudson 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 Hudson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and Hudson.
Diversification Opportunities for Addus HomeCare and Hudson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Addus and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and Hudson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson 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 Hudson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and Hudson go up and down completely randomly.
Pair Corralation between Addus HomeCare and Hudson
If you would invest 11,771 in Addus HomeCare on November 3, 2024 and sell it today you would earn a total of 745.00 from holding Addus HomeCare or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Addus HomeCare vs. Hudson
Performance |
| Timeline |
| Addus HomeCare |
| Hudson |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Addus HomeCare and Hudson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and Hudson
The main advantage of trading using opposite Addus HomeCare and Hudson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, Hudson 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 Hudson will offset losses from the drop in Hudson's long position.| Addus HomeCare vs. Encompass Health Corp | Addus HomeCare vs. Pennant Group | Addus HomeCare vs. Acadia Healthcare | Addus HomeCare vs. Select Medical Holdings |
| Hudson vs. Shenzhen Investment Holdings | Hudson vs. Videolocity International | Hudson vs. Toronto Dominion Bank | Hudson vs. Guangdong Investment Limited |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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