Correlation Between Lincoln Educational and Entegris
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on Lincoln Educational and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Entegris.
Diversification Opportunities for Lincoln Educational and Entegris
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and Entegris is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Entegris go up and down completely randomly.
Pair Corralation between Lincoln Educational and Entegris
Given the investment horizon of 90 days Lincoln Educational is expected to generate 11.55 times less return on investment than Entegris. But when comparing it to its historical volatility, Lincoln Educational Services is 1.13 times less risky than Entegris. It trades about 0.0 of its potential returns per unit of risk. Entegris is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,430 in Entegris on September 12, 2024 and sell it today you would earn a total of 183.00 from holding Entegris or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lincoln Educational Services vs. Entegris
Performance |
| Timeline |
| Lincoln Educational |
| Entegris |
Lincoln Educational and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and Entegris
The main advantage of trading using opposite Lincoln Educational and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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