Correlation Between Adtalem Global and ASML HOLDING

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

Diversification Opportunities for Adtalem Global and ASML HOLDING

0.5

Correlation Coefficient

Adtalem Global  ASML HOLDING

Very weak diversification

The 3 months correlation between Adtalem and ASML is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY 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 ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Adtalem Global i.e., Adtalem Global and ASML HOLDING go up and down completely randomly.

Pair Corralation between Adtalem Global and ASML HOLDING

Assuming the 90 days trading horizon Adtalem Global is expected to generate 1.01 times less return on investment than ASML HOLDING. In addition to that, Adtalem Global is 1.28 times more volatile than ASML HOLDING NY. It trades about 0.05 of its total potential returns per unit of risk. ASML HOLDING NY is currently generating about 0.06 per unit of volatility. If you would invest  59,028  in ASML HOLDING NY on April 24, 2025 and sell it today you would earn a total of  4,572  from holding ASML HOLDING NY or generate 7.75% return on investment over 90 days.

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

Adtalem Global Education  vs.  ASML HOLDING NY

Adtalem Global Education

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Adtalem Global Education are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Adtalem Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ASML HOLDING NY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ASML HOLDING NY are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain primary indicators, ASML HOLDING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Adtalem Global and ASML HOLDING

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

The idea behind Adtalem Global Education and ASML HOLDING NY 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.