Correlation Between Freight Technologies and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both Freight Technologies 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 Freight Technologies and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freight Technologies and Luokung Technology Corp, you can compare the effects of market volatilities on Freight Technologies 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 Freight Technologies with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freight Technologies and Luokung Technology.
Diversification Opportunities for Freight Technologies and Luokung Technology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Freight and Luokung is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies 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 Freight Technologies 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 Freight Technologies 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 Freight Technologies i.e., Freight Technologies and Luokung Technology go up and down completely randomly.
Pair Corralation between Freight Technologies and Luokung Technology
Given the investment horizon of 90 days Freight Technologies is expected to generate 1.3 times more return on investment than Luokung Technology. However, Freight Technologies is 1.3 times more volatile than Luokung Technology Corp. It trades about 0.12 of its potential returns per unit of risk. Luokung Technology Corp is currently generating about 0.02 per unit of risk. If you would invest 158.00 in Freight Technologies on September 12, 2024 and sell it today you would earn a total of 17.00 from holding Freight Technologies or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freight Technologies vs. Luokung Technology Corp
Performance |
| Timeline |
| Freight Technologies |
| Luokung Technology Corp |
Freight Technologies and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freight Technologies and Luokung Technology
The main advantage of trading using opposite Freight Technologies and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight Technologies 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.| Freight Technologies vs. Meridianlink | Freight Technologies vs. Enfusion | Freight Technologies vs. PDF Solutions | Freight Technologies vs. ePlus inc |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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