Correlation Between Acadian Asset and Adtalem Global

Can any of the company-specific risk be diversified away by investing in both Acadian Asset 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 Acadian Asset and Adtalem Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acadian Asset Management and Adtalem Global Education, you can compare the effects of market volatilities on Acadian Asset 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 Acadian Asset with a short position of Adtalem Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadian Asset and Adtalem Global.

Diversification Opportunities for Acadian Asset and Adtalem Global

-0.38

Correlation Coefficient

Acadian Asset  Adtalem Global

Very good diversification

The 3 months correlation between Acadian and Adtalem is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Acadian Asset Management 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 Acadian Asset 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 Acadian Asset Management 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 Acadian Asset i.e., Acadian Asset and Adtalem Global go up and down completely randomly.

Pair Corralation between Acadian Asset and Adtalem Global

Given the investment horizon of 90 days Acadian Asset Management is expected to generate 0.61 times more return on investment than Adtalem Global. However, Acadian Asset Management is 1.65 times less risky than Adtalem Global. It trades about 0.34 of its potential returns per unit of risk. Adtalem Global Education is currently generating about 0.02 per unit of risk. If you would invest  2,893  in Acadian Asset Management on May 6, 2025 and sell it today you would earn a total of  1,169  from holding Acadian Asset Management or generate 40.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acadian Asset Management  vs.  Adtalem Global Education

Acadian Asset Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Acadian Asset Management are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, Acadian Asset demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Adtalem Global Education

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Adtalem Global Education are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Adtalem Global is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Acadian Asset and Adtalem Global

The main advantage of trading using opposite Acadian Asset and Adtalem Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadian Asset 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.

The idea behind Acadian Asset Management and Adtalem Global Education 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..