Correlation Between Luckin Coffee and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and ADRIATIC METALS 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 Luckin Coffee and ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on Luckin Coffee and ADRIATIC METALS 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 Luckin Coffee with a short position of ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and ADRIATIC METALS.
Diversification Opportunities for Luckin Coffee and ADRIATIC METALS
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luckin and ADRIATIC is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS and Luckin Coffee 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 Luckin Coffee are associated (or correlated) with ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between Luckin Coffee and ADRIATIC METALS
Assuming the 90 days trading horizon Luckin Coffee is expected to generate 1.37 times less return on investment than ADRIATIC METALS. In addition to that, Luckin Coffee is 1.27 times more volatile than ADRIATIC METALS LS 013355. It trades about 0.02 of its total potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.03 per unit of volatility. If you would invest 194.00 in ADRIATIC METALS LS 013355 on August 30, 2024 and sell it today you would earn a total of 42.00 from holding ADRIATIC METALS LS 013355 or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| Luckin Coffee |
| ADRIATIC METALS LS |
Luckin Coffee and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and ADRIATIC METALS
The main advantage of trading using opposite Luckin Coffee and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc |
| ADRIATIC METALS vs. AEGEAN AIRLINES | ADRIATIC METALS vs. Costco Wholesale Corp | ADRIATIC METALS vs. Ross Stores | ADRIATIC METALS vs. Retail Estates NV |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |