Correlation Between Lincoln Educational and Repligen
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Repligen 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 Repligen 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 Repligen, you can compare the effects of market volatilities on Lincoln Educational and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Repligen.
Diversification Opportunities for Lincoln Educational and Repligen
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lincoln and Repligen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Repligen go up and down completely randomly.
Pair Corralation between Lincoln Educational and Repligen
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.92 times more return on investment than Repligen. However, Lincoln Educational Services is 1.08 times less risky than Repligen. It trades about 0.1 of its potential returns per unit of risk. Repligen is currently generating about 0.01 per unit of risk. If you would invest 580.00 in Lincoln Educational Services on December 4, 2024 and sell it today you would earn a total of 1,239 from holding Lincoln Educational Services or generate 213.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lincoln Educational Services vs. Repligen
Performance |
Timeline |
Lincoln Educational |
Repligen |
Lincoln Educational and Repligen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lincoln Educational and Repligen
The main advantage of trading using opposite Lincoln Educational and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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