Correlation Between Lincoln Educational and GENERAL
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By analyzing existing cross correlation between Lincoln Educational Services and GENERAL DYNAMICS P, you can compare the effects of market volatilities on Lincoln Educational and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and GENERAL.
Diversification Opportunities for Lincoln Educational and GENERAL
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lincoln and GENERAL is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and GENERAL DYNAMICS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS P 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS P has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and GENERAL go up and down completely randomly.
Pair Corralation between Lincoln Educational and GENERAL
Given the investment horizon of 90 days Lincoln Educational Services is expected to under-perform the GENERAL. In addition to that, Lincoln Educational is 2.4 times more volatile than GENERAL DYNAMICS P. It trades about -0.06 of its total potential returns per unit of risk. GENERAL DYNAMICS P is currently generating about -0.1 per unit of volatility. If you would invest 9,452 in GENERAL DYNAMICS P on September 13, 2024 and sell it today you would lose (183.00) from holding GENERAL DYNAMICS P or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lincoln Educational Services vs. GENERAL DYNAMICS P
Performance |
| Timeline |
| Lincoln Educational |
| GENERAL DYNAMICS P |
Lincoln Educational and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and GENERAL
The main advantage of trading using opposite Lincoln Educational and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
| GENERAL vs. Skechers USA | GENERAL vs. Lululemon Athletica | GENERAL vs. The Gap, | GENERAL vs. Kandi Technologies Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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