Correlation Between Lincoln Educational and GENERAL
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By analyzing existing cross correlation between Lincoln Educational Services and GENERAL ELEC CAP, 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
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lincoln and GENERAL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 ELEC CAP 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 generate 1.35 times more return on investment than GENERAL. However, Lincoln Educational is 1.35 times more volatile than GENERAL ELEC CAP. It trades about 0.12 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.01 per unit of risk. If you would invest 648.00 in Lincoln Educational Services on September 12, 2024 and sell it today you would earn a total of 1,026 from holding Lincoln Educational Services or generate 158.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 34.09% |
| Values | Daily Returns |
Lincoln Educational Services vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Lincoln Educational |
| GENERAL ELEC CAP |
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. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Recursion Pharmaceuticals | GENERAL vs. SoundHound AI |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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