Correlation Between Adtalem Global and United Guardian
Can any of the company-specific risk be diversified away by investing in both Adtalem Global and United Guardian 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 United Guardian 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 United Guardian, you can compare the effects of market volatilities on Adtalem Global and United Guardian 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 United Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and United Guardian.
Diversification Opportunities for Adtalem Global and United Guardian
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adtalem and United is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and United Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Guardian 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 United Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Guardian has no effect on the direction of Adtalem Global i.e., Adtalem Global and United Guardian go up and down completely randomly.
Pair Corralation between Adtalem Global and United Guardian
Given the investment horizon of 90 days Adtalem Global Education is expected to generate 0.56 times more return on investment than United Guardian. However, Adtalem Global Education is 1.78 times less risky than United Guardian. It trades about 0.15 of its potential returns per unit of risk. United Guardian is currently generating about 0.04 per unit of risk. If you would invest 12,004 in Adtalem Global Education on June 11, 2025 and sell it today you would earn a total of 1,616 from holding Adtalem Global Education or generate 13.46% 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. United Guardian
Performance |
| Timeline |
| Adtalem Global Education |
| United Guardian |
Adtalem Global and United Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and United Guardian
The main advantage of trading using opposite Adtalem Global and United Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, United Guardian 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 United Guardian will offset losses from the drop in United Guardian's long position.| Adtalem Global vs. American Public Education | Adtalem Global vs. Laureate Education | Adtalem Global vs. Afya | Adtalem Global vs. Strategic Education |
| United Guardian vs. Union Bankshares | United Guardian vs. Unity Bancorp | United Guardian vs. Utah Medical Products |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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