Correlation Between Lincoln Educational and 74368CBL7

Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and 74368CBL7 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 74368CBL7 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 PL 3218 28 MAR 25, you can compare the effects of market volatilities on Lincoln Educational and 74368CBL7 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 74368CBL7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and 74368CBL7.

Diversification Opportunities for Lincoln Educational and 74368CBL7

0.36

Correlation Coefficient

Lincoln Educational  74368CBL7

Weak diversification

The 3 months correlation between Lincoln and 74368CBL7 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and PL 3218 28 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PL 3218 28 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 74368CBL7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PL 3218 28 has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and 74368CBL7 go up and down completely randomly.

Pair Corralation between Lincoln Educational and 74368CBL7

Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 2.56 times more return on investment than 74368CBL7. However, Lincoln Educational is 2.56 times more volatile than PL 3218 28 MAR 25. It trades about 0.1 of its potential returns per unit of risk. PL 3218 28 MAR 25 is currently generating about -0.01 per unit of risk. If you would invest  961.00  in Lincoln Educational Services on September 13, 2024 and sell it today you would earn a total of  674.00  from holding Lincoln Educational Services or generate 70.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	30.65%
Values	Daily Returns

Lincoln Educational Services  vs.  PL 3218 28 MAR 25

Lincoln Educational

Risk-Adjusted Performance

15 of 100

Solid

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.

PL 3218 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PL 3218 28 MAR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for PL 3218 28 MAR 25 investors.

Pair Trading with Lincoln Educational and 74368CBL7

The main advantage of trading using opposite Lincoln Educational and 74368CBL7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, 74368CBL7 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 74368CBL7 will offset losses from the drop in 74368CBL7's long position.

The idea behind Lincoln Educational Services and PL 3218 28 MAR 25 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.