Correlation Between Grayscale Bitcoin and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin 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 Grayscale Bitcoin and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Bitcoin Cash and Luckin Coffee, you can compare the effects of market volatilities on Grayscale Bitcoin 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 Grayscale Bitcoin with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Luckin Coffee.
Diversification Opportunities for Grayscale Bitcoin and Luckin Coffee
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grayscale and Luckin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Cash and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and Grayscale Bitcoin 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 Grayscale Bitcoin Cash 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 Grayscale Bitcoin i.e., Grayscale Bitcoin and Luckin Coffee go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Luckin Coffee
If you would invest 715.00 in Grayscale Bitcoin Cash on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Grayscale Bitcoin Cash or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Grayscale Bitcoin Cash vs. Luckin Coffee
Performance |
| Timeline |
| Grayscale Bitcoin Cash |
| Luckin Coffee |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Luckin Coffee
The main advantage of trading using opposite Grayscale Bitcoin and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin 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.| Grayscale Bitcoin vs. Grayscale Litecoin Trust | Grayscale Bitcoin vs. Grayscale Digital Large | Grayscale Bitcoin vs. Bitwise 10 Crypto | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
| Luckin Coffee vs. Shake Shack | Luckin Coffee vs. Dominos Pizza | Luckin Coffee vs. Papa Johns International | Luckin Coffee vs. Chipotle Mexican Grill |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |