Correlation Between Addus HomeCare and Cantor Equity

Can any of the company-specific risk be diversified away by investing in both Addus HomeCare and Cantor Equity 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 Cantor Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Addus HomeCare and Cantor Equity Partners,, you can compare the effects of market volatilities on Addus HomeCare and Cantor Equity 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 Cantor Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addus HomeCare and Cantor Equity.

Diversification Opportunities for Addus HomeCare and Cantor Equity

0.06

Correlation Coefficient

Addus HomeCare  Cantor Equity

Significant diversification

The 3 months correlation between Addus and Cantor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and Cantor Equity Partners, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantor Equity Partners, 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 Cantor Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantor Equity Partners, has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and Cantor Equity go up and down completely randomly.

Pair Corralation between Addus HomeCare and Cantor Equity

Given the investment horizon of 90 days Addus HomeCare is expected to generate 0.36 times more return on investment than Cantor Equity. However, Addus HomeCare is 2.81 times less risky than Cantor Equity. It trades about 0.0 of its potential returns per unit of risk. Cantor Equity Partners, is currently generating about -0.09 per unit of risk. If you would invest  11,563  in Addus HomeCare on May 25, 2025 and sell it today you would lose (145.00) from holding Addus HomeCare or give up 1.25% of portfolio value over 90 days.

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

Addus HomeCare  vs.  Cantor Equity Partners,

Addus HomeCare

Risk-Adjusted Performance

Weak

Over the last 90 days Addus HomeCare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Addus HomeCare is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Cantor Equity Partners,

Risk-Adjusted Performance

Weakest

Over the last 90 days Cantor Equity Partners, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Addus HomeCare and Cantor Equity

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

The idea behind Addus HomeCare and Cantor Equity Partners, 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.