Correlation Between Minor International and Lincoln Educational
Can any of the company-specific risk be diversified away by investing in both Minor International 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 Minor International and Lincoln Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and Lincoln Educational Services, you can compare the effects of market volatilities on Minor International 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 Minor International with a short position of Lincoln Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Lincoln Educational.
Diversification Opportunities for Minor International and Lincoln Educational
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Minor and Lincoln is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL and Lincoln Educational Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Educational and Minor International 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 Minor International PCL 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 Minor International i.e., Minor International and Lincoln Educational go up and down completely randomly.
Pair Corralation between Minor International and Lincoln Educational
If you would invest 1,530 in Lincoln Educational Services on September 17, 2024 and sell it today you would earn a total of 71.00 from holding Lincoln Educational Services or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Minor International PCL vs. Lincoln Educational Services
Performance |
| Timeline |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lincoln Educational |
Minor International and Lincoln Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Lincoln Educational
The main advantage of trading using opposite Minor International and Lincoln Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International 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.| Minor International vs. Lincoln Educational Services | Minor International vs. Chester Mining | Minor International vs. Western Acquisition Ventures | Minor International vs. Hurco Companies |
| Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education | Lincoln Educational vs. Afya |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |