Correlation Between Addus HomeCare and 66977WAP4
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By analyzing existing cross correlation between Addus HomeCare and Nova Chemicals 5, you can compare the effects of market volatilities on Addus HomeCare and 66977WAP4 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 66977WAP4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and 66977WAP4.
Diversification Opportunities for Addus HomeCare and 66977WAP4
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Addus and 66977WAP4 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and Nova Chemicals 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Chemicals 5 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 66977WAP4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Chemicals 5 has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and 66977WAP4 go up and down completely randomly.
Pair Corralation between Addus HomeCare and 66977WAP4
Given the investment horizon of 90 days Addus HomeCare is expected to generate 1.97 times more return on investment than 66977WAP4. However, Addus HomeCare is 1.97 times more volatile than Nova Chemicals 5. It trades about -0.07 of its potential returns per unit of risk. Nova Chemicals 5 is currently generating about -0.35 per unit of risk. If you would invest 12,569 in Addus HomeCare on August 31, 2024 and sell it today you would lose (440.00) from holding Addus HomeCare or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Addus HomeCare vs. Nova Chemicals 5
Performance |
| Timeline |
| Addus HomeCare |
| Nova Chemicals 5 |
Addus HomeCare and 66977WAP4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and 66977WAP4
The main advantage of trading using opposite Addus HomeCare and 66977WAP4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, 66977WAP4 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 66977WAP4 will offset losses from the drop in 66977WAP4'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 |
| 66977WAP4 vs. Addus HomeCare | 66977WAP4 vs. Ryanair Holdings PLC | 66977WAP4 vs. Ihuman Inc | 66977WAP4 vs. China Clean Energy |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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