Correlation Between Adtalem Global and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Adtalem Global and Kirin Holdings 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 Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on Adtalem Global and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and Kirin Holdings.
Diversification Opportunities for Adtalem Global and Kirin Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adtalem and Kirin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Adtalem Global i.e., Adtalem Global and Kirin Holdings go up and down completely randomly.
Pair Corralation between Adtalem Global and Kirin Holdings
Assuming the 90 days trading horizon Adtalem Global Education is expected to under-perform the Kirin Holdings. In addition to that, Adtalem Global is 1.8 times more volatile than Kirin Holdings. It trades about -0.01 of its total potential returns per unit of risk. Kirin Holdings is currently generating about 0.11 per unit of volatility. If you would invest 1,280 in Kirin Holdings on September 15, 2024 and sell it today you would earn a total of 30.00 from holding Kirin Holdings or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adtalem Global Education vs. Kirin Holdings
Performance |
| Timeline |
| Adtalem Global Education |
| Kirin Holdings |
Adtalem Global and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and Kirin Holdings
The main advantage of trading using opposite Adtalem Global and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Adtalem Global vs. Apple Inc | Adtalem Global vs. Apple Inc | Adtalem Global vs. Apple Inc | Adtalem Global vs. Apple Inc |
| Kirin Holdings vs. Global Ship Lease | Kirin Holdings vs. Corporate Travel Management | Kirin Holdings vs. CeoTronics AG | Kirin Holdings vs. UNITED RENTALS |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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