Correlation Between Lincoln Educational and Skillful Craftsman
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Skillful Craftsman 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 Skillful Craftsman 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 Skillful Craftsman Education, you can compare the effects of market volatilities on Lincoln Educational and Skillful Craftsman 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 Skillful Craftsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Skillful Craftsman.
Diversification Opportunities for Lincoln Educational and Skillful Craftsman
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lincoln and Skillful is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Skillful Craftsman Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillful Craftsman 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 Skillful Craftsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillful Craftsman has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Skillful Craftsman go up and down completely randomly.
Pair Corralation between Lincoln Educational and Skillful Craftsman
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.71 times more return on investment than Skillful Craftsman. However, Lincoln Educational Services is 1.42 times less risky than Skillful Craftsman. It trades about 0.09 of its potential returns per unit of risk. Skillful Craftsman Education is currently generating about -0.01 per unit of risk. If you would invest 1,004 in Lincoln Educational Services on August 25, 2024 and sell it today you would earn a total of 611.00 from holding Lincoln Educational Services or generate 60.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lincoln Educational Services vs. Skillful Craftsman Education
Performance |
| Timeline |
| Lincoln Educational |
| Skillful Craftsman |
Lincoln Educational and Skillful Craftsman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and Skillful Craftsman
The main advantage of trading using opposite Lincoln Educational and Skillful Craftsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Skillful Craftsman 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 Skillful Craftsman will offset losses from the drop in Skillful Craftsman'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 |
| Skillful Craftsman vs. Wah Fu Education | Skillful Craftsman vs. Golden Sun Education | Skillful Craftsman vs. Elite Education Group | Skillful Craftsman vs. QuantaSing Group Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |