Correlation Between Lincoln Educational and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Bridgford Foods 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 Lincoln Educational and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln Educational Services and Bridgford Foods, you can compare the effects of market volatilities on Lincoln Educational and Bridgford Foods 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 Lincoln Educational with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Bridgford Foods.
Diversification Opportunities for Lincoln Educational and Bridgford Foods
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and Bridgford is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Lincoln Educational 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 Lincoln Educational Services are associated (or correlated) with Bridgford Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgford Foods has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Bridgford Foods go up and down completely randomly.
Pair Corralation between Lincoln Educational and Bridgford Foods
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.86 times more return on investment than Bridgford Foods. However, Lincoln Educational Services is 1.16 times less risky than Bridgford Foods. It trades about 0.1 of its potential returns per unit of risk. Bridgford Foods is currently generating about -0.01 per unit of risk. If you would invest 926.00 in Lincoln Educational Services on August 26, 2024 and sell it today you would earn a total of 689.00 from holding Lincoln Educational Services or generate 74.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Lincoln Educational Services vs. Bridgford Foods
Performance |
| Timeline |
| Lincoln Educational |
| Bridgford Foods |
Lincoln Educational and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and Bridgford Foods
The main advantage of trading using opposite Lincoln Educational and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Bridgford Foods 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 Bridgford Foods will offset losses from the drop in Bridgford Foods' long position.| Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
| Bridgford Foods vs. Bellring Brands LLC | Bridgford Foods vs. Ingredion Incorporated | Bridgford Foods vs. Nomad Foods | Bridgford Foods vs. Post Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |