Correlation Between Lincoln Educational and 08949LAB6
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By analyzing existing cross correlation between Lincoln Educational Services and BIG RIV STL, you can compare the effects of market volatilities on Lincoln Educational and 08949LAB6 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 08949LAB6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and 08949LAB6.
Diversification Opportunities for Lincoln Educational and 08949LAB6
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and 08949LAB6 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and BIG RIV STL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIG RIV STL 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 08949LAB6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIG RIV STL has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and 08949LAB6 go up and down completely randomly.
Pair Corralation between Lincoln Educational and 08949LAB6
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 14.16 times more return on investment than 08949LAB6. However, Lincoln Educational is 14.16 times more volatile than BIG RIV STL. It trades about 0.2 of its potential returns per unit of risk. BIG RIV STL is currently generating about 0.05 per unit of risk. If you would invest 1,208 in Lincoln Educational Services on September 12, 2024 and sell it today you would earn a total of 425.00 from holding Lincoln Educational Services or generate 35.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.44% |
| Values | Daily Returns |
Lincoln Educational Services vs. BIG RIV STL
Performance |
| Timeline |
| Lincoln Educational |
| BIG RIV STL |
Lincoln Educational and 08949LAB6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and 08949LAB6
The main advantage of trading using opposite Lincoln Educational and 08949LAB6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, 08949LAB6 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 08949LAB6 will offset losses from the drop in 08949LAB6'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 |
| 08949LAB6 vs. Kandi Technologies Group | 08949LAB6 vs. Tesla Inc | 08949LAB6 vs. Lincoln Educational Services | 08949LAB6 vs. Zane Interactive Publishing |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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