Correlation Between DETALION GAMES and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both DETALION GAMES 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 DETALION GAMES and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DETALION GAMES SA and Luckin Coffee, you can compare the effects of market volatilities on DETALION GAMES 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 DETALION GAMES with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of DETALION GAMES and Luckin Coffee.
Diversification Opportunities for DETALION GAMES and Luckin Coffee
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DETALION and Luckin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding DETALION GAMES SA and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and DETALION GAMES 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 DETALION GAMES 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 DETALION GAMES i.e., DETALION GAMES and Luckin Coffee go up and down completely randomly.
Pair Corralation between DETALION GAMES and Luckin Coffee
Assuming the 90 days horizon DETALION GAMES SA is expected to under-perform the Luckin Coffee. But the stock apears to be less risky and, when comparing its historical volatility, DETALION GAMES SA is 1.07 times less risky than Luckin Coffee. The stock trades about -0.02 of its potential returns per unit of risk. The Luckin Coffee is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,610 in Luckin Coffee on November 6, 2024 and sell it today you would earn a total of 70.00 from holding Luckin Coffee or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DETALION GAMES SA vs. Luckin Coffee
Performance |
| Timeline |
| DETALION GAMES SA |
| Luckin Coffee |
DETALION GAMES and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DETALION GAMES and Luckin Coffee
The main advantage of trading using opposite DETALION GAMES and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DETALION GAMES 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.| DETALION GAMES vs. The Home Depot | DETALION GAMES vs. PROSIEBENSAT1 MEDIADR4 | DETALION GAMES vs. ANTA SPORTS PRODUCT | DETALION GAMES vs. DFS Furniture PLC |
| Luckin Coffee vs. Burlington Stores | Luckin Coffee vs. CORNISH METALS INC | Luckin Coffee vs. GOME Retail Holdings | Luckin Coffee vs. Japan Tobacco |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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