Correlation Between Lincoln Educational and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and Xponential Fitness 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 Xponential Fitness 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 Xponential Fitness, you can compare the effects of market volatilities on Lincoln Educational and Xponential Fitness 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 Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and Xponential Fitness.
Diversification Opportunities for Lincoln Educational and Xponential Fitness
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lincoln and Xponential is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness 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 Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and Xponential Fitness go up and down completely randomly.
Pair Corralation between Lincoln Educational and Xponential Fitness
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.52 times more return on investment than Xponential Fitness. However, Lincoln Educational Services is 1.94 times less risky than Xponential Fitness. It trades about 0.1 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.03 per unit of risk. If you would invest 992.00 in Lincoln Educational Services on December 4, 2024 and sell it today you would earn a total of 827.00 from holding Lincoln Educational Services or generate 83.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lincoln Educational Services vs. Xponential Fitness
Performance |
Timeline |
Lincoln Educational |
Xponential Fitness |
Lincoln Educational and Xponential Fitness Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lincoln Educational and Xponential Fitness
The main advantage of trading using opposite Lincoln Educational and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |