Correlation Between Addus HomeCare and Nasdaq CTA
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By analyzing existing cross correlation between Addus HomeCare and Nasdaq CTA Artificial, you can compare the effects of market volatilities on Addus HomeCare and Nasdaq CTA 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 Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and Nasdaq CTA.
Diversification Opportunities for Addus HomeCare and Nasdaq CTA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Addus and Nasdaq is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial 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 Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and Nasdaq CTA go up and down completely randomly.
Pair Corralation between Addus HomeCare and Nasdaq CTA
Given the investment horizon of 90 days Addus HomeCare is expected to generate 6.34 times less return on investment than Nasdaq CTA. In addition to that, Addus HomeCare is 1.4 times more volatile than Nasdaq CTA Artificial. It trades about 0.01 of its total potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.09 per unit of volatility. If you would invest 148,986 in Nasdaq CTA Artificial on September 20, 2024 and sell it today you would earn a total of 10,886 from holding Nasdaq CTA Artificial or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Addus HomeCare vs. Nasdaq CTA Artificial
Performance |
| Timeline |
Addus HomeCare and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
Addus HomeCare
Pair trading matchups for Addus HomeCare
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with Addus HomeCare and Nasdaq CTA
The main advantage of trading using opposite Addus HomeCare and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA'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 |
| Nasdaq CTA vs. Hawkins | Nasdaq CTA vs. Air Products and | Nasdaq CTA vs. Mativ Holdings | Nasdaq CTA vs. Origin Materials |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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