Correlation Between ScanTech and Lincoln National

Can any of the company-specific risk be diversified away by investing in both ScanTech and Lincoln National 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 ScanTech and Lincoln National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ScanTech AI Systems and Lincoln National, you can compare the effects of market volatilities on ScanTech and Lincoln National 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 ScanTech with a short position of Lincoln National. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanTech and Lincoln National.

Diversification Opportunities for ScanTech and Lincoln National

-0.53

Correlation Coefficient

ScanTech  Lincoln National

Excellent diversification

The 3 months correlation between ScanTech and Lincoln is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Lincoln National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln National and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Lincoln National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln National has no effect on the direction of ScanTech i.e., ScanTech and Lincoln National go up and down completely randomly.

Pair Corralation between ScanTech and Lincoln National

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Lincoln National. In addition to that, ScanTech is 26.47 times more volatile than Lincoln National. It trades about -0.05 of its total potential returns per unit of risk. Lincoln National is currently generating about 0.14 per unit of volatility. If you would invest  2,624  in Lincoln National on May 22, 2025 and sell it today you would earn a total of  104.00  from holding Lincoln National or generate 3.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ScanTech AI Systems  vs.  Lincoln National

ScanTech AI Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Lincoln National

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lincoln National are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Lincoln National is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ScanTech and Lincoln National

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

The idea behind ScanTech AI Systems and Lincoln National 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.