Correlation Between CanSino Biologics and ADDUS HOMECARE
Can any of the company-specific risk be diversified away by investing in both CanSino Biologics and ADDUS HOMECARE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CanSino Biologics and ADDUS HOMECARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanSino Biologics and ADDUS HOMECARE, you can compare the effects of market volatilities on CanSino Biologics and ADDUS HOMECARE 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 CanSino Biologics with a short position of ADDUS HOMECARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanSino Biologics and ADDUS HOMECARE.
Diversification Opportunities for CanSino Biologics and ADDUS HOMECARE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CanSino and ADDUS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CanSino Biologics and ADDUS HOMECARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADDUS HOMECARE and CanSino Biologics 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 CanSino Biologics are associated (or correlated) with ADDUS HOMECARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADDUS HOMECARE has no effect on the direction of CanSino Biologics i.e., CanSino Biologics and ADDUS HOMECARE go up and down completely randomly.
Pair Corralation between CanSino Biologics and ADDUS HOMECARE
Assuming the 90 days trading horizon CanSino Biologics is expected to under-perform the ADDUS HOMECARE. In addition to that, CanSino Biologics is 1.53 times more volatile than ADDUS HOMECARE. It trades about -0.15 of its total potential returns per unit of risk. ADDUS HOMECARE is currently generating about 0.01 per unit of volatility. If you would invest 12,100 in ADDUS HOMECARE on November 3, 2024 and sell it today you would earn a total of 0.00 from holding ADDUS HOMECARE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanSino Biologics vs. ADDUS HOMECARE
Performance |
| Timeline |
| CanSino Biologics |
| ADDUS HOMECARE |
CanSino Biologics and ADDUS HOMECARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanSino Biologics and ADDUS HOMECARE
The main advantage of trading using opposite CanSino Biologics and ADDUS HOMECARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanSino Biologics position performs unexpectedly, ADDUS HOMECARE 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 ADDUS HOMECARE will offset losses from the drop in ADDUS HOMECARE's long position.| CanSino Biologics vs. ASURE SOFTWARE | CanSino Biologics vs. CLOVER HEALTH INV | CanSino Biologics vs. Urban Outfitters | CanSino Biologics vs. RCI Hospitality Holdings |
| ADDUS HOMECARE vs. SIVERS SEMICONDUCTORS AB | ADDUS HOMECARE vs. NorAm Drilling AS | ADDUS HOMECARE vs. Volkswagen AG | ADDUS HOMECARE vs. Darden Restaurants |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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