Correlation Between Gaztransport Technigaz and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Luckin Coffee 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 Gaztransport Technigaz and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and Luckin Coffee, you can compare the effects of market volatilities on Gaztransport Technigaz and Luckin Coffee 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 Gaztransport Technigaz with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Luckin Coffee.
Diversification Opportunities for Gaztransport Technigaz and Luckin Coffee
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaztransport and Luckin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and Gaztransport Technigaz 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 Gaztransport Technigaz SA are associated (or correlated) with Luckin Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luckin Coffee has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Luckin Coffee go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Luckin Coffee
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.41 times more return on investment than Luckin Coffee. However, Gaztransport Technigaz SA is 2.44 times less risky than Luckin Coffee. It trades about 0.04 of its potential returns per unit of risk. Luckin Coffee is currently generating about 0.0 per unit of risk. If you would invest 11,426 in Gaztransport Technigaz SA on September 14, 2024 and sell it today you would earn a total of 1,874 from holding Gaztransport Technigaz SA or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Luckin Coffee
Performance |
| Timeline |
| Gaztransport Technigaz |
| Luckin Coffee |
Gaztransport Technigaz and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Luckin Coffee
The main advantage of trading using opposite Gaztransport Technigaz and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Luckin Coffee 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 Luckin Coffee will offset losses from the drop in Luckin Coffee's long position.| Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| Luckin Coffee vs. Datang International Power | Luckin Coffee vs. Molson Coors Beverage | Luckin Coffee vs. Fevertree Drinks PLC | Luckin Coffee vs. DICKER DATA LTD |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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