Correlation Between Adtalem Global and Ihuman
Can any of the company-specific risk be diversified away by investing in both Adtalem Global and Ihuman 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 Ihuman 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 Ihuman Inc, you can compare the effects of market volatilities on Adtalem Global and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and Ihuman.
Diversification Opportunities for Adtalem Global and Ihuman
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adtalem and Ihuman is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Adtalem Global i.e., Adtalem Global and Ihuman go up and down completely randomly.
Pair Corralation between Adtalem Global and Ihuman
Given the investment horizon of 90 days Adtalem Global Education is expected to generate 0.54 times more return on investment than Ihuman. However, Adtalem Global Education is 1.86 times less risky than Ihuman. It trades about 0.08 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.01 per unit of risk. If you would invest 3,947 in Adtalem Global Education on August 27, 2024 and sell it today you would earn a total of 5,061 from holding Adtalem Global Education or generate 128.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adtalem Global Education vs. Ihuman Inc
Performance |
| Timeline |
| Adtalem Global Education |
| Ihuman Inc |
Adtalem Global and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and Ihuman
The main advantage of trading using opposite Adtalem Global and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Adtalem Global vs. Grand Canyon Education | Adtalem Global vs. Afya | Adtalem Global vs. Bright Scholar Education | Adtalem Global vs. Laureate Education |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |