Correlation Between Luckin Coffee and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and GREENX 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 GREENX 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 GREENX METALS LTD, you can compare the effects of market volatilities on Luckin Coffee and GREENX 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and GREENX METALS.
Diversification Opportunities for Luckin Coffee and GREENX METALS
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Luckin and GREENX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and GREENX METALS go up and down completely randomly.
Pair Corralation between Luckin Coffee and GREENX METALS
Assuming the 90 days trading horizon Luckin Coffee is expected to generate 0.86 times more return on investment than GREENX METALS. However, Luckin Coffee is 1.17 times less risky than GREENX METALS. It trades about 0.04 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.02 per unit of risk. If you would invest 2,140 in Luckin Coffee on September 26, 2024 and sell it today you would earn a total of 100.00 from holding Luckin Coffee or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. GREENX METALS LTD
Performance |
| Timeline |
| Luckin Coffee |
| GREENX METALS LTD |
Luckin Coffee and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and GREENX METALS
The main advantage of trading using opposite Luckin Coffee and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, GREENX 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Luckin Coffee vs. Scientific Games | Luckin Coffee vs. Performance Food Group | Luckin Coffee vs. Astral Foods Limited | Luckin Coffee vs. QINGCI GAMES INC |
| GREENX METALS vs. Luckin Coffee | GREENX METALS vs. Applied Materials | GREENX METALS vs. Darden Restaurants | GREENX METALS vs. The Yokohama Rubber |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |