Correlation Between Addus HomeCare and INTNED
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By analyzing existing cross correlation between Addus HomeCare and INTNED 4252 28 MAR 33, you can compare the effects of market volatilities on Addus HomeCare and INTNED 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 Addus HomeCare with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and INTNED.
Diversification Opportunities for Addus HomeCare and INTNED
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Addus and INTNED is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and INTNED 4252 28 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 4252 28 and Addus HomeCare 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 Addus HomeCare are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 4252 28 has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and INTNED go up and down completely randomly.
Pair Corralation between Addus HomeCare and INTNED
Given the investment horizon of 90 days Addus HomeCare is expected to generate 0.51 times more return on investment than INTNED. However, Addus HomeCare is 1.97 times less risky than INTNED. It trades about 0.14 of its potential returns per unit of risk. INTNED 4252 28 MAR 33 is currently generating about -0.04 per unit of risk. If you would invest 12,295 in Addus HomeCare on September 26, 2024 and sell it today you would earn a total of 594.00 from holding Addus HomeCare or generate 4.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 90.48% |
Values | Daily Returns |
Addus HomeCare vs. INTNED 4252 28 MAR 33
Performance |
Timeline |
Addus HomeCare |
INTNED 4252 28 |
Addus HomeCare and INTNED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Addus HomeCare and INTNED
The main advantage of trading using opposite Addus HomeCare and INTNED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addus HomeCare position performs unexpectedly, INTNED 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 INTNED will offset losses from the drop in INTNED's long position.Addus HomeCare vs. Encompass Health Corp | Addus HomeCare vs. Pennant Group | Addus HomeCare vs. Acadia Healthcare | Addus HomeCare vs. Select Medical Holdings |
INTNED vs. Analog Devices | INTNED vs. Bassett Furniture Industries | INTNED vs. Smith Douglas Homes | INTNED vs. Addus HomeCare |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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