Correlation Between Lincoln Educational and MARTIN
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By analyzing existing cross correlation between Lincoln Educational Services and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Lincoln Educational and MARTIN 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 MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and MARTIN.
Diversification Opportunities for Lincoln Educational and MARTIN
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lincoln and MARTIN is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and MARTIN go up and down completely randomly.
Pair Corralation between Lincoln Educational and MARTIN
Given the investment horizon of 90 days Lincoln Educational Services is expected to under-perform the MARTIN. In addition to that, Lincoln Educational is 13.45 times more volatile than MARTIN MARIETTA MATLS. It trades about -0.01 of its total potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about 0.06 per unit of volatility. If you would invest 9,644 in MARTIN MARIETTA MATLS on December 24, 2024 and sell it today you would earn a total of 84.00 from holding MARTIN MARIETTA MATLS or generate 0.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Lincoln Educational Services vs. MARTIN MARIETTA MATLS
Performance |
Timeline |
Lincoln Educational |
MARTIN MARIETTA MATLS |
Lincoln Educational and MARTIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lincoln Educational and MARTIN
The main advantage of trading using opposite Lincoln Educational and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, MARTIN 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 MARTIN will offset losses from the drop in MARTIN'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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