Correlation Between Addus HomeCare and PACIFIC
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By analyzing existing cross correlation between Addus HomeCare and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Addus HomeCare and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and PACIFIC.
Diversification Opportunities for Addus HomeCare and PACIFIC
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Addus and PACIFIC is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and PACIFIC go up and down completely randomly.
Pair Corralation between Addus HomeCare and PACIFIC
Given the investment horizon of 90 days Addus HomeCare is expected to under-perform the PACIFIC. In addition to that, Addus HomeCare is 19.09 times more volatile than PACIFIC GAS ELECTRIC. It trades about -0.09 of its total potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.04 per unit of volatility. If you would invest 9,811 in PACIFIC GAS ELECTRIC on September 5, 2024 and sell it today you would lose (8.00) from holding PACIFIC GAS ELECTRIC or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Addus HomeCare vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Addus HomeCare |
| PACIFIC GAS ELECTRIC |
Addus HomeCare and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addus HomeCare and PACIFIC
The main advantage of trading using opposite Addus HomeCare and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC'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 |
| PACIFIC vs. Air Lease | PACIFIC vs. Boston Properties | PACIFIC vs. Bassett Furniture Industries | PACIFIC vs. Addus HomeCare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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