Correlation Between Adtalem Global and Jeld Wen

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

Diversification Opportunities for Adtalem Global and Jeld Wen

-0.66

Correlation Coefficient

Adtalem Global  Jeld Wen

Excellent diversification

The 3 months correlation between Adtalem and Jeld is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and Jeld Wen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeld Wen Holding 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 Jeld Wen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeld Wen Holding has no effect on the direction of Adtalem Global i.e., Adtalem Global and Jeld Wen go up and down completely randomly.

Pair Corralation between Adtalem Global and Jeld Wen

Given the investment horizon of 90 days Adtalem Global Education is expected to generate 0.49 times more return on investment than Jeld Wen. However, Adtalem Global Education is 2.05 times less risky than Jeld Wen. It trades about 0.02 of its potential returns per unit of risk. Jeld Wen Holding is currently generating about -0.03 per unit of risk. If you would invest  11,397  in Adtalem Global Education on May 4, 2025 and sell it today you would earn a total of  80.00  from holding Adtalem Global Education or generate 0.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Adtalem Global Education  vs.  Jeld Wen Holding

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Jeld Wen Holding

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Adtalem Global and Jeld Wen

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

The idea behind Adtalem Global Education and Jeld Wen Holding 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.