Correlation Between Lincoln National and Emerge Capital
Can any of the company-specific risk be diversified away by investing in both Lincoln National and Emerge Capital 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 National and Emerge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln National and Emerge Capital Management, you can compare the effects of market volatilities on Lincoln National and Emerge Capital 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 National with a short position of Emerge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln National and Emerge Capital.
Diversification Opportunities for Lincoln National and Emerge Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lincoln and Emerge is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln National and Emerge Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerge Capital Management and Lincoln National 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 National are associated (or correlated) with Emerge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerge Capital Management has no effect on the direction of Lincoln National i.e., Lincoln National and Emerge Capital go up and down completely randomly.
Pair Corralation between Lincoln National and Emerge Capital
If you would invest 2,567 in Emerge Capital Management on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Emerge Capital Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lincoln National vs. Emerge Capital Management
Performance |
| Timeline |
| Lincoln National |
| Emerge Capital Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lincoln National and Emerge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln National and Emerge Capital
The main advantage of trading using opposite Lincoln National and Emerge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln National position performs unexpectedly, Emerge Capital 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 Emerge Capital will offset losses from the drop in Emerge Capital's long position.| Lincoln National vs. MetLife | Lincoln National vs. Aflac Incorporated | Lincoln National vs. Unum Group | Lincoln National vs. Manulife Financial Corp |
| Emerge Capital vs. Franklin Templeton Limited | Emerge Capital vs. Western Asset Global | Emerge Capital vs. Millerhoward High Income | Emerge Capital vs. Brandywineglobal Globalome Opportunities |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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