Correlation Between Addus HomeCare and CITIGROUP
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By analyzing existing cross correlation between Addus HomeCare and CITIGROUP INC 6675, you can compare the effects of market volatilities on Addus HomeCare and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and CITIGROUP.
Diversification Opportunities for Addus HomeCare and CITIGROUP
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addus and CITIGROUP is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and CITIGROUP INC 6675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6675 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6675 has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and CITIGROUP go up and down completely randomly.
Pair Corralation between Addus HomeCare and CITIGROUP
Given the investment horizon of 90 days Addus HomeCare is expected to under-perform the CITIGROUP. In addition to that, Addus HomeCare is 1.21 times more volatile than CITIGROUP INC 6675. It trades about -0.11 of its total potential returns per unit of risk. CITIGROUP INC 6675 is currently generating about -0.12 per unit of volatility. If you would invest 11,243 in CITIGROUP INC 6675 on September 12, 2024 and sell it today you would lose (323.00) from holding CITIGROUP INC 6675 or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Addus HomeCare vs. CITIGROUP INC 6675
Performance |
| Timeline |
| Addus HomeCare |
| CITIGROUP INC 6675 |
Addus HomeCare and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and CITIGROUP
The main advantage of trading using opposite Addus HomeCare and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP'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 |
| CITIGROUP vs. Mativ Holdings | CITIGROUP vs. Addus HomeCare | CITIGROUP vs. Chemours Co | CITIGROUP vs. Hudson Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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