Correlation Between Adtalem Global and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both Adtalem Global and Xinhua Winshare 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 Xinhua Winshare 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 Xinhua Winshare Publishing, you can compare the effects of market volatilities on Adtalem Global and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and Xinhua Winshare.
Diversification Opportunities for Adtalem Global and Xinhua Winshare
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adtalem and Xinhua is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Adtalem Global i.e., Adtalem Global and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Adtalem Global and Xinhua Winshare
Assuming the 90 days trading horizon Adtalem Global Education is expected to generate 0.99 times more return on investment than Xinhua Winshare. However, Adtalem Global Education is 1.01 times less risky than Xinhua Winshare. It trades about 0.28 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.1 per unit of risk. If you would invest 9,150 in Adtalem Global Education on November 5, 2024 and sell it today you would earn a total of 1,050 from holding Adtalem Global Education or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adtalem Global Education vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Adtalem Global Education |
| Xinhua Winshare Publ |
Adtalem Global and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and Xinhua Winshare
The main advantage of trading using opposite Adtalem Global and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Adtalem Global vs. CarsalesCom | Adtalem Global vs. TIANDE CHEMICAL | Adtalem Global vs. H2O Retailing | Adtalem Global vs. MARKET VECTR RETAIL |
| Xinhua Winshare vs. The Japan Steel | Xinhua Winshare vs. Mount Gibson Iron | Xinhua Winshare vs. DENTSPLY SIRONA | Xinhua Winshare vs. ARDAGH METAL PACDL 0001 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |