Correlation Between ACG Metals and Lincoln Educational
Can any of the company-specific risk be diversified away by investing in both ACG Metals and Lincoln Educational 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 ACG Metals and Lincoln Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and Lincoln Educational Services, you can compare the effects of market volatilities on ACG Metals and Lincoln Educational 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 ACG Metals with a short position of Lincoln Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and Lincoln Educational.
Diversification Opportunities for ACG Metals and Lincoln Educational
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and Lincoln is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Lincoln Educational Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Educational and ACG Metals 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 ACG Metals Limited are associated (or correlated) with Lincoln Educational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Educational has no effect on the direction of ACG Metals i.e., ACG Metals and Lincoln Educational go up and down completely randomly.
Pair Corralation between ACG Metals and Lincoln Educational
If you would invest 918.00 in Lincoln Educational Services on August 25, 2024 and sell it today you would earn a total of 697.00 from holding Lincoln Educational Services or generate 75.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.2% |
| Values | Daily Returns |
ACG Metals Limited vs. Lincoln Educational Services
Performance |
| Timeline |
| ACG Metals Limited |
| Lincoln Educational |
ACG Metals and Lincoln Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and Lincoln Educational
The main advantage of trading using opposite ACG Metals and Lincoln Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, Lincoln Educational 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 Lincoln Educational will offset losses from the drop in Lincoln Educational's long position.| ACG Metals vs. Cedar Realty Trust | ACG Metals vs. Nasdaq Inc | ACG Metals vs. Chemours Co | ACG Metals vs. Air Products and |
| Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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