Correlation Between Adtalem Global and Curo Group
Can any of the company-specific risk be diversified away by investing in both Adtalem Global and Curo Group 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 Adtalem Global and Curo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adtalem Global Education and Curo Group Holdings, you can compare the effects of market volatilities on Adtalem Global and Curo Group 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 Adtalem Global with a short position of Curo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and Curo Group.
Diversification Opportunities for Adtalem Global and Curo Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Adtalem and Curo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Curo Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curo Group Holdings and Adtalem Global 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 Adtalem Global Education are associated (or correlated) with Curo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curo Group Holdings has no effect on the direction of Adtalem Global i.e., Adtalem Global and Curo Group go up and down completely randomly.
Pair Corralation between Adtalem Global and Curo Group
Given the investment horizon of 90 days Adtalem Global Education is expected to generate 0.36 times more return on investment than Curo Group. However, Adtalem Global Education is 2.8 times less risky than Curo Group. It trades about 0.08 of its potential returns per unit of risk. Curo Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 3,946 in Adtalem Global Education on August 24, 2024 and sell it today you would earn a total of 4,936 from holding Adtalem Global Education or generate 125.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Adtalem Global Education vs. Curo Group Holdings
Performance |
| Timeline |
| Adtalem Global Education |
| Curo Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Adtalem Global and Curo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and Curo Group
The main advantage of trading using opposite Adtalem Global and Curo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Curo Group 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 Curo Group will offset losses from the drop in Curo Group's long position.| Adtalem Global vs. Grand Canyon Education | Adtalem Global vs. Afya | Adtalem Global vs. Bright Scholar Education | Adtalem Global vs. Laureate Education |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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