Correlation Between CEIX Old and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both CEIX Old 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 CEIX Old and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEIX Old and Addus HomeCare, you can compare the effects of market volatilities on CEIX Old 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 CEIX Old with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEIX Old and Addus HomeCare.
Diversification Opportunities for CEIX Old and Addus HomeCare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CEIX and Addus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CEIX Old and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and CEIX Old 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 CEIX Old 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 CEIX Old i.e., CEIX Old and Addus HomeCare go up and down completely randomly.
Pair Corralation between CEIX Old and Addus HomeCare
If you would invest (100.00) in CEIX Old on December 2, 2024 and sell it today you would earn a total of 100.00 from holding CEIX Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CEIX Old vs. Addus HomeCare
Performance |
Timeline |
CEIX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Addus HomeCare |
CEIX Old and Addus HomeCare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CEIX Old and Addus HomeCare
The main advantage of trading using opposite CEIX Old and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEIX Old 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.CEIX Old vs. Alliance Resource Partners | CEIX Old vs. Natural Resource Partners | CEIX Old vs. Hallador Energy | CEIX Old vs. NACCO Industries |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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