Correlation Between Adtalem Global and Outfront

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Can any of the company-specific risk be diversified away by investing in both Adtalem Global and Outfront 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 Outfront 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 Outfront Media Capital, you can compare the effects of market volatilities on Adtalem Global and Outfront 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 Outfront. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and Outfront.

Diversification Opportunities for Adtalem Global and Outfront

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Adtalem and Outfront is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Outfront Media Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media Capital 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 Outfront. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media Capital has no effect on the direction of Adtalem Global i.e., Adtalem Global and Outfront go up and down completely randomly.

Pair Corralation between Adtalem Global and Outfront

Given the investment horizon of 90 days Adtalem Global Education is expected to generate 0.99 times more return on investment than Outfront. However, Adtalem Global Education is 1.01 times less risky than Outfront. It trades about 0.28 of its potential returns per unit of risk. Outfront Media Capital is currently generating about -0.12 per unit of risk. If you would invest  11,512  in Adtalem Global Education on July 25, 2025 and sell it today you would earn a total of  3,792  from holding Adtalem Global Education or generate 32.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Adtalem Global Education  vs.  Outfront Media Capital

 Performance 
       Timeline  
Adtalem Global Education 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Adtalem Global Education are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Adtalem Global exhibited solid returns over the last few months and may actually be approaching a breakup point.
Outfront Media Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Outfront Media Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Outfront Media Capital investors.

Adtalem Global and Outfront Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Adtalem Global and Outfront

The main advantage of trading using opposite Adtalem Global and Outfront positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Outfront 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 Outfront will offset losses from the drop in Outfront's long position.
The idea behind Adtalem Global Education and Outfront Media Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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