Correlation Between 26442KAD8 and Addus HomeCare
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By analyzing existing cross correlation between DUKE ENERGY P and Addus HomeCare, you can compare the effects of market volatilities on 26442KAD8 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 26442KAD8 with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442KAD8 and Addus HomeCare.
Diversification Opportunities for 26442KAD8 and Addus HomeCare
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 26442KAD8 and Addus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY P and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and 26442KAD8 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 DUKE ENERGY P 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 26442KAD8 i.e., 26442KAD8 and Addus HomeCare go up and down completely randomly.
Pair Corralation between 26442KAD8 and Addus HomeCare
Assuming the 90 days trading horizon DUKE ENERGY P is expected to generate 0.32 times more return on investment than Addus HomeCare. However, DUKE ENERGY P is 3.11 times less risky than Addus HomeCare. It trades about -0.22 of its potential returns per unit of risk. Addus HomeCare is currently generating about -0.08 per unit of risk. If you would invest 9,896 in DUKE ENERGY P on August 28, 2024 and sell it today you would lose (104.00) from holding DUKE ENERGY P or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
DUKE ENERGY P vs. Addus HomeCare
Performance |
| Timeline |
| DUKE ENERGY P |
| Addus HomeCare |
26442KAD8 and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26442KAD8 and Addus HomeCare
The main advantage of trading using opposite 26442KAD8 and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442KAD8 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.| 26442KAD8 vs. Transportadora de Gas | 26442KAD8 vs. NorthWestern | 26442KAD8 vs. Vistra Energy Corp | 26442KAD8 vs. Esperion Therapeutics |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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