Correlation Between Lixiang Education and Lincoln Educational
Can any of the company-specific risk be diversified away by investing in both Lixiang Education and Lincoln Educational 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 Lixiang Education and Lincoln Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixiang Education Holding and Lincoln Educational Services, you can compare the effects of market volatilities on Lixiang Education and Lincoln Educational 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 Lixiang Education with a short position of Lincoln Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixiang Education and Lincoln Educational.
Diversification Opportunities for Lixiang Education and Lincoln Educational
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lixiang and Lincoln is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lixiang Education Holding and Lincoln Educational Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Educational and Lixiang Education 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 Lixiang Education Holding are associated (or correlated) with Lincoln Educational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Educational has no effect on the direction of Lixiang Education i.e., Lixiang Education and Lincoln Educational go up and down completely randomly.
Pair Corralation between Lixiang Education and Lincoln Educational
Given the investment horizon of 90 days Lixiang Education Holding is expected to under-perform the Lincoln Educational. In addition to that, Lixiang Education is 2.66 times more volatile than Lincoln Educational Services. It trades about -0.1 of its total potential returns per unit of risk. Lincoln Educational Services is currently generating about 0.18 per unit of volatility. If you would invest 1,527 in Lincoln Educational Services on November 3, 2024 and sell it today you would earn a total of 105.00 from holding Lincoln Educational Services or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lixiang Education Holding vs. Lincoln Educational Services
Performance |
| Timeline |
| Lixiang Education Holding |
| Lincoln Educational |
Lixiang Education and Lincoln Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixiang Education and Lincoln Educational
The main advantage of trading using opposite Lixiang Education and Lincoln Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixiang Education position performs unexpectedly, Lincoln Educational 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 Lincoln Educational will offset losses from the drop in Lincoln Educational's long position.| Lixiang Education vs. China Liberal Education | Lixiang Education vs. Four Seasons Education | Lixiang Education vs. Jianzhi Education Technology | Lixiang Education vs. Elite Education Group |
| Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |