Correlation Between Komercní Banka and Adtalem Global

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

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

Diversification Opportunities for Komercní Banka and Adtalem Global

0.08

Correlation Coefficient

Komercní Banka  Adtalem Global

Significant diversification

The 3 months correlation between Komercní and Adtalem is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Komercn banka as 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 Komercní Banka 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 Komercn banka as 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 Komercní Banka i.e., Komercní Banka and Adtalem Global go up and down completely randomly.

Pair Corralation between Komercní Banka and Adtalem Global

Assuming the 90 days trading horizon Komercn banka as is expected to generate 0.8 times more return on investment than Adtalem Global. However, Komercn banka as is 1.25 times less risky than Adtalem Global. It trades about 0.24 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  3,346  in Komercn banka as on December 24, 2024 and sell it today you would earn a total of  954.00  from holding Komercn banka as or generate 28.51% return on investment over 90 days.

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

Komercn banka as  vs.  Adtalem Global Education

Komercn banka as

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Komercn banka as are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Komercní Banka reported 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 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Adtalem Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Komercní Banka and Adtalem Global

The main advantage of trading using opposite Komercní Banka and Adtalem Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercní Banka 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 Komercn banka as 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.