Correlation Between Xinhua Winshare and Adtalem Global
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and Adtalem Global 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 Xinhua Winshare and Adtalem Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and Adtalem Global Education, you can compare the effects of market volatilities on Xinhua Winshare and Adtalem Global 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 Xinhua Winshare with a short position of Adtalem Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Adtalem Global.
Diversification Opportunities for Xinhua Winshare and Adtalem Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and Adtalem is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Adtalem Global Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adtalem Global Education and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with Adtalem Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adtalem Global Education has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Adtalem Global go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Adtalem Global
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to under-perform the Adtalem Global. In addition to that, Xinhua Winshare is 1.01 times more volatile than Adtalem Global Education. It trades about -0.1 of its total potential returns per unit of risk. Adtalem Global Education is currently generating about 0.28 per unit of volatility. 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 |
Xinhua Winshare Publishing vs. Adtalem Global Education
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Adtalem Global Education |
Xinhua Winshare and Adtalem Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Adtalem Global
The main advantage of trading using opposite Xinhua Winshare and Adtalem Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Adtalem Global 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 Adtalem Global will offset losses from the drop in Adtalem Global's long position.| Xinhua Winshare vs. The Japan Steel | Xinhua Winshare vs. Mount Gibson Iron | Xinhua Winshare vs. DENTSPLY SIRONA | Xinhua Winshare vs. ARDAGH METAL PACDL 0001 |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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