Correlation Between GENERAL and Lincoln Educational
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By analyzing existing cross correlation between GENERAL DYNAMICS P and Lincoln Educational Services, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Lincoln Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Lincoln Educational.
Diversification Opportunities for GENERAL and Lincoln Educational
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GENERAL and Lincoln is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P and Lincoln Educational Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Educational and GENERAL 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 GENERAL DYNAMICS P 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 GENERAL i.e., GENERAL and Lincoln Educational go up and down completely randomly.
Pair Corralation between GENERAL and Lincoln Educational
Assuming the 90 days trading horizon GENERAL DYNAMICS P is expected to under-perform the Lincoln Educational. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL DYNAMICS P is 1.13 times less risky than Lincoln Educational. The bond trades about -0.21 of its potential returns per unit of risk. The Lincoln Educational Services is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,281 in Lincoln Educational Services on August 29, 2024 and sell it today you would earn a total of 365.00 from holding Lincoln Educational Services or generate 28.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. Lincoln Educational Services
Performance |
| Timeline |
| GENERAL DYNAMICS P |
| Lincoln Educational |
GENERAL and Lincoln Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Lincoln Educational
The main advantage of trading using opposite GENERAL and Lincoln Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Lincoln Educational Services | GENERAL vs. Weyco Group | GENERAL vs. Merit Medical Systems | GENERAL vs. Toro Co |
| Lincoln Educational vs. Gaotu Techedu DRC | Lincoln Educational vs. TAL Education Group | Lincoln Educational vs. Strategic Education | Lincoln Educational vs. Vasta Platform |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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