Correlation Between Lincoln Educational and Lion One
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Lincoln Educational and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Lion One.
Diversification Opportunities for Lincoln Educational and Lion One
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and Lion is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Lion One go up and down completely randomly.
Pair Corralation between Lincoln Educational and Lion One
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 1.07 times more return on investment than Lion One. However, Lincoln Educational is 1.07 times more volatile than Lion One Metals. It trades about 0.35 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.29 per unit of risk. If you would invest 1,281 in Lincoln Educational Services on August 29, 2024 and sell it today you would earn a total of 365.00 from holding Lincoln Educational Services or generate 28.49% 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. Lion One Metals
Performance |
| Timeline |
| Lincoln Educational |
| Lion One Metals |
Lincoln Educational and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and Lion One
The main advantage of trading using opposite Lincoln Educational and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Lincoln Educational vs. Gaotu Techedu DRC | Lincoln Educational vs. TAL Education Group | Lincoln Educational vs. Strategic Education | Lincoln Educational vs. Vasta Platform |
| Lion One vs. Silver Hammer Mining | Lion One vs. Reyna Silver Corp | Lion One vs. Guanajuato Silver | Lion One vs. Silver One Resources |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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