Correlation Between Lincoln Educational and CleanTech Lithium
Can any of the company-specific risk be diversified away by investing in both Lincoln Educational and CleanTech Lithium 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 CleanTech Lithium 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 CleanTech Lithium Plc, you can compare the effects of market volatilities on Lincoln Educational and CleanTech Lithium 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 CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Educational and CleanTech Lithium.
Diversification Opportunities for Lincoln Educational and CleanTech Lithium
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lincoln and CleanTech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Educational Services and CleanTech Lithium Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium Plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium Plc has no effect on the direction of Lincoln Educational i.e., Lincoln Educational and CleanTech Lithium go up and down completely randomly.
Pair Corralation between Lincoln Educational and CleanTech Lithium
Given the investment horizon of 90 days Lincoln Educational Services is expected to generate 0.45 times more return on investment than CleanTech Lithium. However, Lincoln Educational Services is 2.23 times less risky than CleanTech Lithium. It trades about -0.09 of its potential returns per unit of risk. CleanTech Lithium Plc is currently generating about -0.13 per unit of risk. If you would invest 2,308 in Lincoln Educational Services on May 31, 2025 and sell it today you would lose (397.00) from holding Lincoln Educational Services or give up 17.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Lincoln Educational Services vs. CleanTech Lithium Plc
Performance |
| Timeline |
| Lincoln Educational |
| CleanTech Lithium Plc |
Lincoln Educational and CleanTech Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Educational and CleanTech Lithium
The main advantage of trading using opposite Lincoln Educational and CleanTech Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Educational position performs unexpectedly, CleanTech Lithium 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 CleanTech Lithium will offset losses from the drop in CleanTech Lithium's long position.| Lincoln Educational vs. Universal Technical Institute | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. Strategic Education | Lincoln Educational vs. Grand Canyon Education |
| CleanTech Lithium vs. CDW Corp | CleanTech Lithium vs. RBC Bearings Incorporated | CleanTech Lithium vs. Topbuild Corp | CleanTech Lithium vs. Trio Tech International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |