Correlation Between STGEORGE MINING and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Addus HomeCare, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Addus HomeCare.
Diversification Opportunities for STGEORGE MINING and Addus HomeCare
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STGEORGE and Addus is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and Addus HomeCare go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Addus HomeCare
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 6.75 times more return on investment than Addus HomeCare. However, STGEORGE MINING is 6.75 times more volatile than Addus HomeCare. It trades about 0.07 of its potential returns per unit of risk. Addus HomeCare is currently generating about 0.09 per unit of risk. If you would invest 1.15 in STGEORGE MINING LTD on November 1, 2024 and sell it today you would earn a total of 0.05 from holding STGEORGE MINING LTD or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Addus HomeCare
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Addus HomeCare |
STGEORGE MINING and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Addus HomeCare
The main advantage of trading using opposite STGEORGE MINING and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. International Consolidated Airlines | STGEORGE MINING vs. MCEWEN MINING INC | STGEORGE MINING vs. SOGECLAIR SA INH | STGEORGE MINING vs. United Airlines Holdings |
| Addus HomeCare vs. United Utilities Group | Addus HomeCare vs. UNITED UTILITIES GR | Addus HomeCare vs. GLG LIFE TECH | Addus HomeCare vs. SOFI TECHNOLOGIES |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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