Correlation Between Addus HomeCare and CleanTech Lithium

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

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

Diversification Opportunities for Addus HomeCare and CleanTech Lithium

0.0

Correlation Coefficient

Addus HomeCare  CleanTech Lithium

Pay attention - limited upside

The 3 months correlation between Addus and CleanTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Addus HomeCare and CleanTech Lithium Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium Plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium Plc has no effect on the direction of Addus HomeCare i.e., Addus HomeCare and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Addus HomeCare and CleanTech Lithium

If you would invest  11,015  in Addus HomeCare on May 21, 2025 and sell it today you would earn a total of  404.00  from holding Addus HomeCare or generate 3.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Addus HomeCare  vs.  CleanTech Lithium Plc

Addus HomeCare

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Addus HomeCare are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. 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.

CleanTech Lithium Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days CleanTech Lithium Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CleanTech Lithium 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 CleanTech Lithium

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

The idea behind Addus HomeCare and CleanTech Lithium Plc 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.