Correlation Between Lincoln Educational and CXApp
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and CXApp 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 CXApp 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 CXApp Inc, you can compare the effects of market volatilities on Lincoln Educational and CXApp 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 CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and CXApp.
Diversification Opportunities for Lincoln Educational and CXApp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lincoln and CXApp is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and CXApp go up and down completely randomly.
Pair Corralation between Lincoln Educational and CXApp
Given the investment horizon of 90 days Lincoln Educational Services is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Lincoln Educational Services is 1.27 times less risky than CXApp. The stock trades about -0.17 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 20.00 in CXApp Inc on October 12, 2024 and sell it today you would earn a total of 0.00 from holding CXApp Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lincoln Educational Services vs. CXApp Inc
Performance |
| Timeline |
| Lincoln Educational |
| CXApp Inc |
Lincoln Educational and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and CXApp
The main advantage of trading using opposite Lincoln Educational and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, CXApp 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 CXApp will offset losses from the drop in CXApp's long position.| Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
| CXApp vs. CDW Corp | CXApp vs. 51Talk Online Education | CXApp vs. Cheche Group Class | CXApp vs. Lincoln Educational Services |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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