Correlation Between Addus HomeCare and ENERGY
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By analyzing existing cross correlation between Addus HomeCare and ENERGY TRANSFER PARTNERS, you can compare the effects of market volatilities on Addus HomeCare and ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and ENERGY.
Diversification Opportunities for Addus HomeCare and ENERGY
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addus and ENERGY is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and ENERGY TRANSFER PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGY TRANSFER PARTNERS 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGY TRANSFER PARTNERS has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and ENERGY go up and down completely randomly.
Pair Corralation between Addus HomeCare and ENERGY
Given the investment horizon of 90 days Addus HomeCare is expected to under-perform the ENERGY. In addition to that, Addus HomeCare is 2.07 times more volatile than ENERGY TRANSFER PARTNERS. It trades about -0.07 of its total potential returns per unit of risk. ENERGY TRANSFER PARTNERS is currently generating about -0.11 per unit of volatility. If you would invest 11,512 in ENERGY TRANSFER PARTNERS on August 31, 2024 and sell it today you would lose (186.00) from holding ENERGY TRANSFER PARTNERS or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Addus HomeCare vs. ENERGY TRANSFER PARTNERS
Performance |
| Timeline |
| Addus HomeCare |
| ENERGY TRANSFER PARTNERS |
Addus HomeCare and ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and ENERGY
The main advantage of trading using opposite Addus HomeCare and ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, ENERGY 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 ENERGY will offset losses from the drop in ENERGY'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 |
| ENERGY vs. Aldel Financial II | ENERGY vs. Jacobs Solutions | ENERGY vs. Supercom | ENERGY vs. Sabra Healthcare REIT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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