Correlation Between Lincoln Educational and Apogee Therapeutics,

Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Apogee Therapeutics, 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 Lincoln Educational and Apogee Therapeutics, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lincoln Educational Services and Apogee Therapeutics, Common, you can compare the effects of market volatilities on Lincoln Educational and Apogee Therapeutics, 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 Apogee Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Apogee Therapeutics,.

Diversification Opportunities for Lincoln Educational and Apogee Therapeutics,

-0.62

Correlation Coefficient

Lincoln Educational  Apogee Therapeutics,

Excellent diversification

The 3 months correlation between Lincoln and Apogee is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, 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 Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between Lincoln Educational and Apogee Therapeutics,

Given the investment horizon of 90 days Lincoln Educational is expected to generate 1.31 times less return on investment than Apogee Therapeutics,. But when comparing it to its historical volatility, Lincoln Educational Services is 1.81 times less risky than Apogee Therapeutics,. It trades about 0.11 of its potential returns per unit of risk. Apogee Therapeutics, Common is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,700  in Apogee Therapeutics, Common on October 4, 2024 and sell it today you would earn a total of  2,830  from holding Apogee Therapeutics, Common or generate 166.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.73%
Values	Daily Returns

Lincoln Educational Services  vs.  Apogee Therapeutics, Common

Lincoln Educational

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lincoln Educational Services are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Lincoln Educational exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Lincoln Educational and Apogee Therapeutics,

The main advantage of trading using opposite Lincoln Educational and Apogee Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Apogee Therapeutics, 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 Apogee Therapeutics, will offset losses from the drop in Apogee Therapeutics,'s long position.

The idea behind Lincoln Educational Services and Apogee Therapeutics, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.