Correlation Between ADDUS HOMECARE and FORTRESS BIOTECHPRFA

Can any of the company-specific risk be diversified away by investing in both ADDUS HOMECARE and FORTRESS BIOTECHPRFA 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 ADDUS HOMECARE and FORTRESS BIOTECHPRFA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ADDUS HOMECARE and FORTRESS BIOTECHPRFA 25, you can compare the effects of market volatilities on ADDUS HOMECARE and FORTRESS BIOTECHPRFA 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 FORTRESS BIOTECHPRFA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADDUS HOMECARE and FORTRESS BIOTECHPRFA.

Diversification Opportunities for ADDUS HOMECARE and FORTRESS BIOTECHPRFA

0.11

Correlation Coefficient

ADDUS HOMECARE  FORTRESS BIOTECHPRFA

Average diversification

The 3 months correlation between ADDUS and FORTRESS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ADDUS HOMECARE and FORTRESS BIOTECHPRFA 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTRESS BIOTECHPRFA 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 FORTRESS BIOTECHPRFA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTRESS BIOTECHPRFA has no effect on the direction of ADDUS HOMECARE i.e., ADDUS HOMECARE and FORTRESS BIOTECHPRFA go up and down completely randomly.

Pair Corralation between ADDUS HOMECARE and FORTRESS BIOTECHPRFA

Assuming the 90 days trading horizon ADDUS HOMECARE is expected to generate 0.36 times more return on investment than FORTRESS BIOTECHPRFA. However, ADDUS HOMECARE is 2.75 times less risky than FORTRESS BIOTECHPRFA. It trades about 0.06 of its potential returns per unit of risk. FORTRESS BIOTECHPRFA 25 is currently generating about -0.02 per unit of risk. If you would invest  9,200  in ADDUS HOMECARE on July 18, 2025 and sell it today you would earn a total of  650.00  from holding ADDUS HOMECARE or generate 7.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ADDUS HOMECARE  vs.  FORTRESS BIOTECHPRFA 25

ADDUS HOMECARE

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ADDUS HOMECARE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, ADDUS HOMECARE may actually be approaching a critical reversion point that can send shares even higher in November 2025.

FORTRESS BIOTECHPRFA

Risk-Adjusted Performance

Weakest

Over the last 90 days FORTRESS BIOTECHPRFA 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, FORTRESS BIOTECHPRFA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ADDUS HOMECARE and FORTRESS BIOTECHPRFA

The main advantage of trading using opposite ADDUS HOMECARE and FORTRESS BIOTECHPRFA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADDUS HOMECARE position performs unexpectedly, FORTRESS BIOTECHPRFA 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 FORTRESS BIOTECHPRFA will offset losses from the drop in FORTRESS BIOTECHPRFA's long position.

The idea behind ADDUS HOMECARE and FORTRESS BIOTECHPRFA 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .