Correlation Between Adtalem Global and Integer Holdings

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

Diversification Opportunities for Adtalem Global and Integer Holdings

0.45

Correlation Coefficient

Adtalem Global  Integer Holdings

Very weak diversification

The 3 months correlation between Adtalem and Integer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp 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 Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Adtalem Global i.e., Adtalem Global and Integer Holdings go up and down completely randomly.

Pair Corralation between Adtalem Global and Integer Holdings

Given the investment horizon of 90 days Adtalem Global Education is expected to generate 1.05 times more return on investment than Integer Holdings. However, Adtalem Global is 1.05 times more volatile than Integer Holdings Corp. It trades about -0.01 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about -0.1 per unit of risk. If you would invest  13,070  in Adtalem Global Education on May 21, 2025 and sell it today you would lose (217.00) from holding Adtalem Global Education or give up 1.66% of portfolio value over 90 days.

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

Adtalem Global Education  vs.  Integer Holdings Corp

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 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.

Integer Holdings Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Integer Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Adtalem Global and Integer Holdings

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

The idea behind Adtalem Global Education and Integer Holdings Corp 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.