Correlation Between Adtalem Global and Maplebear

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

Diversification Opportunities for Adtalem Global and Maplebear

-0.46

Correlation Coefficient

Adtalem Global  Maplebear

Very good diversification

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

Pair Corralation between Adtalem Global and Maplebear

Given the investment horizon of 90 days Adtalem Global Education is expected to under-perform the Maplebear. But the stock apears to be less risky and, when comparing its historical volatility, Adtalem Global Education is 1.11 times less risky than Maplebear. The stock trades about -0.07 of its potential returns per unit of risk. The Maplebear is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4,361  in Maplebear on May 10, 2025 and sell it today you would earn a total of  760.00  from holding Maplebear or generate 17.43% return on investment over 90 days.

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

Adtalem Global Education  vs.  Maplebear

Adtalem Global Education

Risk-Adjusted Performance

Weakest

Over the last 90 days Adtalem Global Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Maplebear

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adtalem Global and Maplebear

The main advantage of trading using opposite Adtalem Global and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global position performs unexpectedly, Maplebear 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 Maplebear will offset losses from the drop in Maplebear's long position.

The idea behind Adtalem Global Education and Maplebear 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.