Correlation Between Luckin Coffee and EAT WELL
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and EAT WELL 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 EAT WELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and EAT WELL INVESTMENT, you can compare the effects of market volatilities on Luckin Coffee and EAT WELL 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 EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and EAT WELL.
Diversification Opportunities for Luckin Coffee and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luckin and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT 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 EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and EAT WELL go up and down completely randomly.
Pair Corralation between Luckin Coffee and EAT WELL
If you would invest 1,800 in Luckin Coffee on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Luckin Coffee or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| Luckin Coffee |
| EAT WELL INVESTMENT |
Luckin Coffee and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and EAT WELL
The main advantage of trading using opposite Luckin Coffee and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| Luckin Coffee vs. United Natural Foods | Luckin Coffee vs. TreeHouse Foods | Luckin Coffee vs. WILLIS LEASE FIN | Luckin Coffee vs. Sixt Leasing SE |
| EAT WELL vs. Ameriprise Financial | EAT WELL vs. Ares Management Corp | EAT WELL vs. Superior Plus Corp | EAT WELL vs. NMI Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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