Correlation Between Montage Gold and Addus HomeCare
Can any of the company-specific risk be diversified away by investing in both Montage Gold 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 Montage Gold and Addus HomeCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Montage Gold Corp and Addus HomeCare, you can compare the effects of market volatilities on Montage Gold 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 Montage Gold with a short position of Addus HomeCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Addus HomeCare.
Diversification Opportunities for Montage Gold and Addus HomeCare
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Montage and Addus is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and Addus HomeCare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addus HomeCare and Montage Gold 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 Montage Gold Corp 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 Montage Gold i.e., Montage Gold and Addus HomeCare go up and down completely randomly.
Pair Corralation between Montage Gold and Addus HomeCare
Assuming the 90 days trading horizon Montage Gold Corp is expected to generate 1.72 times more return on investment than Addus HomeCare. However, Montage Gold is 1.72 times more volatile than Addus HomeCare. It trades about 0.16 of its potential returns per unit of risk. Addus HomeCare is currently generating about 0.03 per unit of risk. If you would invest 68.00 in Montage Gold Corp on August 16, 2025 and sell it today you would earn a total of 624.00 from holding Montage Gold Corp or generate 917.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Montage Gold Corp vs. Addus HomeCare
Performance |
| Timeline |
| Montage Gold Corp |
| Addus HomeCare |
Montage Gold and Addus HomeCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Addus HomeCare
The main advantage of trading using opposite Montage Gold and Addus HomeCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold 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.| Montage Gold vs. Allied Gold | Montage Gold vs. Ivanhoe Energy | Montage Gold vs. Skeena Resources | Montage Gold vs. Snowline Gold Corp |
| Addus HomeCare vs. National HealthCare | Addus HomeCare vs. Brookdale Senior Living | Addus HomeCare vs. Ardent Health Partners, | Addus HomeCare vs. Aveanna Healthcare 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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