Correlation Between Syntec Optics and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both Syntec Optics 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 Syntec Optics and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntec Optics Holdings and Addus HomeCare, you can compare the effects of market volatilities on Syntec Optics 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 Syntec Optics with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Optics and Addus HomeCare.
Diversification Opportunities for Syntec Optics and Addus HomeCare
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Syntec and Addus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Optics Holdings and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and Syntec Optics 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 Syntec Optics Holdings 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 Syntec Optics i.e., Syntec Optics and Addus HomeCare go up and down completely randomly.
Pair Corralation between Syntec Optics and Addus HomeCare
Given the investment horizon of 90 days Syntec Optics Holdings is expected to under-perform the Addus HomeCare. In addition to that, Syntec Optics is 5.18 times more volatile than Addus HomeCare. It trades about -0.04 of its total potential returns per unit of risk. Addus HomeCare is currently generating about 0.06 per unit of volatility. If you would invest 9,258 in Addus HomeCare on September 12, 2024 and sell it today you would earn a total of 3,038 from holding Addus HomeCare or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syntec Optics Holdings vs. Addus HomeCare
Performance |
| Timeline |
| Syntec Optics Holdings |
| Addus HomeCare |
Syntec Optics and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Optics and Addus HomeCare
The main advantage of trading using opposite Syntec Optics and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Optics 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.| Syntec Optics vs. Fabrinet | Syntec Optics vs. Deswell Industries | Syntec Optics vs. Vicor | Syntec Optics vs. Flex |
| Addus HomeCare vs. Encompass Health Corp | Addus HomeCare vs. Pennant Group | Addus HomeCare vs. Acadia Healthcare | Addus HomeCare vs. Select Medical Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |