Correlation Between Lincoln Educational and CITIGROUP
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By analyzing existing cross correlation between Lincoln Educational Services and CITIGROUP FDG INC, you can compare the effects of market volatilities on Lincoln Educational and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and CITIGROUP.
Diversification Opportunities for Lincoln Educational and CITIGROUP
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lincoln and CITIGROUP is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and CITIGROUP FDG INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP FDG INC 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP FDG INC has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and CITIGROUP go up and down completely randomly.
Pair Corralation between Lincoln Educational and CITIGROUP
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.69 times more return on investment than CITIGROUP. However, Lincoln Educational Services is 1.46 times less risky than CITIGROUP. It trades about 0.32 of its potential returns per unit of risk. CITIGROUP FDG INC is currently generating about -0.16 per unit of risk. If you would invest 1,328 in Lincoln Educational Services on September 1, 2024 and sell it today you would earn a total of 315.00 from holding Lincoln Educational Services or generate 23.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Lincoln Educational Services vs. CITIGROUP FDG INC
Performance |
| Timeline |
| Lincoln Educational |
| CITIGROUP FDG INC |
Lincoln Educational and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and CITIGROUP
The main advantage of trading using opposite Lincoln Educational and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Lincoln Educational vs. American Public Education | Lincoln Educational vs. ATA Creativity Global | Lincoln Educational vs. Cogna Educacao SA | Lincoln Educational vs. Adtalem Global Education |
| CITIGROUP vs. Lincoln Educational Services | CITIGROUP vs. Grupo Televisa SAB | CITIGROUP vs. Radcom | CITIGROUP vs. WEBTOON Entertainment Common |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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