Correlation Between C3 Ai and Addus HomeCare

Can any of the company-specific risk be diversified away by investing in both C3 Ai 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 C3 Ai and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and Addus HomeCare, you can compare the effects of market volatilities on C3 Ai 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 C3 Ai with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and Addus HomeCare.

Diversification Opportunities for C3 Ai and Addus HomeCare

0.28

Correlation Coefficient

C3 Ai  Addus HomeCare

Modest diversification

The 3 months correlation between C3 Ai and Addus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and C3 Ai 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 C3 Ai Inc 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 C3 Ai i.e., C3 Ai and Addus HomeCare go up and down completely randomly.

Pair Corralation between C3 Ai and Addus HomeCare

Allowing for the 90-day total investment horizon C3 Ai Inc is expected to under-perform the Addus HomeCare. In addition to that, C3 Ai is 1.75 times more volatile than Addus HomeCare. It trades about -0.05 of its total potential returns per unit of risk. Addus HomeCare is currently generating about 0.04 per unit of volatility. If you would invest  11,567  in Addus HomeCare on September 2, 2025 and sell it today you would earn a total of  453.00  from holding Addus HomeCare or generate 3.92% return on investment over 90 days.

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

C3 Ai Inc  vs.  Addus HomeCare

C3 Ai Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days C3 Ai Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with C3 Ai and Addus HomeCare

The main advantage of trading using opposite C3 Ai and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai 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.

The idea behind C3 Ai Inc and Addus HomeCare 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.