Correlation Between Trust Stamp and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both Trust Stamp 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 Trust Stamp and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Stamp and Luokung Technology Corp, you can compare the effects of market volatilities on Trust Stamp 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 Trust Stamp with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Stamp and Luokung Technology.
Diversification Opportunities for Trust Stamp and Luokung Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trust and Luokung is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp 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 Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and Luokung Technology go up and down completely randomly.
Pair Corralation between Trust Stamp and Luokung Technology
Given the investment horizon of 90 days Trust Stamp is expected to under-perform the Luokung Technology. In addition to that, Trust Stamp is 1.12 times more volatile than Luokung Technology Corp. It trades about -0.33 of its total potential returns per unit of risk. Luokung Technology Corp is currently generating about -0.14 per unit of volatility. If you would invest 185.00 in Luokung Technology Corp on December 3, 2024 and sell it today you would lose (19.00) from holding Luokung Technology Corp or give up 10.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Trust Stamp vs. Luokung Technology Corp
Performance |
| Timeline |
| Trust Stamp |
| Luokung Technology Corp |
Trust Stamp and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trust Stamp and Luokung Technology
The main advantage of trading using opposite Trust Stamp and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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.| Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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