Correlation Between FUYO GENERAL and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Addus HomeCare, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Addus HomeCare.
Diversification Opportunities for FUYO GENERAL and Addus HomeCare
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and Addus is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Addus HomeCare go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Addus HomeCare
Assuming the 90 days horizon FUYO GENERAL is expected to generate 4.67 times less return on investment than Addus HomeCare. But when comparing it to its historical volatility, FUYO GENERAL LEASE is 1.44 times less risky than Addus HomeCare. It trades about 0.02 of its potential returns per unit of risk. Addus HomeCare is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,900 in Addus HomeCare on September 21, 2024 and sell it today you would earn a total of 1,300 from holding Addus HomeCare or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Addus HomeCare
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Addus HomeCare |
FUYO GENERAL and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Addus HomeCare
The main advantage of trading using opposite FUYO GENERAL and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Air Transport Services | FUYO GENERAL vs. EVS Broadcast Equipment | FUYO GENERAL vs. GFL ENVIRONM | FUYO GENERAL vs. Broadcom |
| Addus HomeCare vs. Ramsay Health Care | Addus HomeCare vs. Universal Health Services | Addus HomeCare vs. Superior Plus Corp | Addus HomeCare vs. SIVERS SEMICONDUCTORS AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |