Correlation Between Auddia and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both Auddia and Luokung Technology 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 Auddia and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auddia Inc and Luokung Technology Corp, you can compare the effects of market volatilities on Auddia and Luokung Technology 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 Auddia with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auddia and Luokung Technology.
Diversification Opportunities for Auddia and Luokung Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auddia and Luokung is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp and Auddia 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 Auddia Inc are associated (or correlated) with Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of Auddia i.e., Auddia and Luokung Technology go up and down completely randomly.
Pair Corralation between Auddia and Luokung Technology
Given the investment horizon of 90 days Auddia Inc is expected to under-perform the Luokung Technology. In addition to that, Auddia is 1.42 times more volatile than Luokung Technology Corp. It trades about -0.09 of its total potential returns per unit of risk. Luokung Technology Corp is currently generating about 0.02 per unit of volatility. If you would invest 177.00 in Luokung Technology Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Luokung Technology Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auddia Inc vs. Luokung Technology Corp
Performance |
| Timeline |
| Auddia Inc |
| Luokung Technology Corp |
Auddia and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auddia and Luokung Technology
The main advantage of trading using opposite Auddia and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auddia position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.The idea behind Auddia Inc and Luokung Technology Corp 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.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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