Correlation Between Lincoln Educational and Minor International
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Minor International 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 Minor International 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 Minor International PCL, you can compare the effects of market volatilities on Lincoln Educational and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Minor International.
Diversification Opportunities for Lincoln Educational and Minor International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lincoln and Minor is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Minor International PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International PCL 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International PCL has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Minor International go up and down completely randomly.
Pair Corralation between Lincoln Educational and Minor International
If you would invest 1,290 in Lincoln Educational Services on September 17, 2024 and sell it today you would earn a total of 311.00 from holding Lincoln Educational Services or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Lincoln Educational Services vs. Minor International PCL
Performance |
| Timeline |
| Lincoln Educational |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lincoln Educational and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and Minor International
The main advantage of trading using opposite Lincoln Educational and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education | Lincoln Educational vs. Afya |
| Minor International vs. Lincoln Educational Services | Minor International vs. Chester Mining | Minor International vs. Western Acquisition Ventures | Minor International vs. Hurco Companies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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