Correlation Between Graham Holdings and Adtalem Global
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Adtalem Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Adtalem Global Education, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Adtalem Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Adtalem Global.
Diversification Opportunities for Graham Holdings and Adtalem Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Graham and Adtalem is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co 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 Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Adtalem Global go up and down completely randomly.
Pair Corralation between Graham Holdings and Adtalem Global
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 1.0 times more return on investment than Adtalem Global. However, Graham Holdings Co is 1.0 times less risky than Adtalem Global. It trades about 0.14 of its potential returns per unit of risk. Adtalem Global Education is currently generating about 0.04 per unit of risk. If you would invest 95,545 in Graham Holdings Co on June 5, 2025 and sell it today you would earn a total of 13,351 from holding Graham Holdings Co or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Adtalem Global Education
Performance |
| Timeline |
| Graham Holdings |
| Adtalem Global Education |
Graham Holdings and Adtalem Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Adtalem Global
The main advantage of trading using opposite Graham Holdings and Adtalem Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| Adtalem Global vs. American Public Education | Adtalem Global vs. Laureate Education | Adtalem Global vs. Afya | Adtalem Global vs. Strategic Education |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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