Correlation Between ENERGY and Addus HomeCare
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By analyzing existing cross correlation between ENERGY TRANSFER OPER and Addus HomeCare, you can compare the effects of market volatilities on ENERGY 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 ENERGY with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGY and Addus HomeCare.
Diversification Opportunities for ENERGY and Addus HomeCare
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ENERGY and Addus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ENERGY TRANSFER OPER and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and ENERGY 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 ENERGY TRANSFER OPER 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 ENERGY i.e., ENERGY and Addus HomeCare go up and down completely randomly.
Pair Corralation between ENERGY and Addus HomeCare
Assuming the 90 days trading horizon ENERGY TRANSFER OPER is expected to under-perform the Addus HomeCare. But the bond apears to be less risky and, when comparing its historical volatility, ENERGY TRANSFER OPER is 1.06 times less risky than Addus HomeCare. The bond trades about -0.14 of its potential returns per unit of risk. The Addus HomeCare is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 12,829 in Addus HomeCare on August 28, 2024 and sell it today you would lose (534.00) from holding Addus HomeCare or give up 4.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENERGY TRANSFER OPER vs. Addus HomeCare
Performance |
| Timeline |
| ENERGY TRANSFER OPER |
| Addus HomeCare |
ENERGY and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGY and Addus HomeCare
The main advantage of trading using opposite ENERGY and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGY 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.| ENERGY vs. Addus HomeCare | ENERGY vs. Dream Homes Development | ENERGY vs. Ecovyst | ENERGY vs. Luxfer Holdings PLC |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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