Correlation Between De Grey and ADDUS HOMECARE
Can any of the company-specific risk be diversified away by investing in both De Grey 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 De Grey and ADDUS HOMECARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and ADDUS HOMECARE, you can compare the effects of market volatilities on De Grey 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 De Grey with a short position of ADDUS HOMECARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and ADDUS HOMECARE.
Diversification Opportunities for De Grey and ADDUS HOMECARE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between DGD and ADDUS is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and ADDUS HOMECARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADDUS HOMECARE and De Grey 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 De Grey Mining 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 De Grey i.e., De Grey and ADDUS HOMECARE go up and down completely randomly.
Pair Corralation between De Grey and ADDUS HOMECARE
Assuming the 90 days trading horizon De Grey Mining is expected to generate 2.15 times more return on investment than ADDUS HOMECARE. However, De Grey is 2.15 times more volatile than ADDUS HOMECARE. It trades about 0.13 of its potential returns per unit of risk. ADDUS HOMECARE is currently generating about 0.05 per unit of risk. If you would invest 63.00 in De Grey Mining on October 17, 2024 and sell it today you would earn a total of 54.00 from holding De Grey Mining or generate 85.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. ADDUS HOMECARE
Performance |
| Timeline |
| De Grey Mining |
| ADDUS HOMECARE |
De Grey and ADDUS HOMECARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and ADDUS HOMECARE
The main advantage of trading using opposite De Grey and ADDUS HOMECARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey 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.| De Grey vs. The Hanover Insurance | De Grey vs. PACIFIC ONLINE | De Grey vs. CarsalesCom | De Grey vs. ZhongAn Online P |
| ADDUS HOMECARE vs. De Grey Mining | ADDUS HOMECARE vs. GRIFFIN MINING LTD | ADDUS HOMECARE vs. Cleanaway Waste Management | ADDUS HOMECARE vs. ITALIAN WINE BRANDS |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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