Correlation Between GALENA MINING and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both GALENA MINING 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 GALENA MINING and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GALENA MINING LTD and Luckin Coffee, you can compare the effects of market volatilities on GALENA MINING 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 GALENA MINING with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Luckin Coffee.
Diversification Opportunities for GALENA MINING and Luckin Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Luckin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and GALENA MINING 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 GALENA MINING LTD 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 GALENA MINING i.e., GALENA MINING and Luckin Coffee go up and down completely randomly.
Pair Corralation between GALENA MINING and Luckin Coffee
Assuming the 90 days horizon GALENA MINING LTD is expected to under-perform the Luckin Coffee. In addition to that, GALENA MINING is 1.54 times more volatile than Luckin Coffee. It trades about -0.02 of its total potential returns per unit of risk. Luckin Coffee is currently generating about 0.03 per unit of volatility. If you would invest 2,105 in Luckin Coffee on October 14, 2024 and sell it today you would earn a total of 235.00 from holding Luckin Coffee or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GALENA MINING LTD vs. Luckin Coffee
Performance |
| Timeline |
| GALENA MINING LTD |
| Luckin Coffee |
GALENA MINING and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Luckin Coffee
The main advantage of trading using opposite GALENA MINING and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING 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.| GALENA MINING vs. CAIRN HOMES EO | GALENA MINING vs. Addus HomeCare | GALENA MINING vs. YATRA ONLINE DL 0001 | GALENA MINING vs. Neinor Homes SA |
| Luckin Coffee vs. Cincinnati Financial Corp | Luckin Coffee vs. CVB Financial Corp | Luckin Coffee vs. Webster Financial | Luckin Coffee vs. GALENA MINING 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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