Correlation Between Luckin Coffee and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Gaztransport Technigaz 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 Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Luckin Coffee and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Gaztransport Technigaz.
Diversification Opportunities for Luckin Coffee and Gaztransport Technigaz
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luckin and Gaztransport is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Luckin Coffee and Gaztransport Technigaz
Assuming the 90 days trading horizon Luckin Coffee is expected to generate 1.82 times less return on investment than Gaztransport Technigaz. In addition to that, Luckin Coffee is 1.26 times more volatile than Gaztransport Technigaz SA. It trades about 0.11 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.26 per unit of volatility. If you would invest 13,450 in Gaztransport Technigaz SA on November 4, 2024 and sell it today you would earn a total of 1,190 from holding Gaztransport Technigaz SA or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Luckin Coffee vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| Luckin Coffee |
| Gaztransport Technigaz |
Luckin Coffee and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and Gaztransport Technigaz
The main advantage of trading using opposite Luckin Coffee and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| Luckin Coffee vs. Keck Seng Investments | Luckin Coffee vs. Virtus Investment Partners | Luckin Coffee vs. EPSILON HEALTHCARE LTD | Luckin Coffee vs. Guangdong Investment Limited |
| Gaztransport Technigaz vs. TERADATA | Gaztransport Technigaz vs. China Datang | Gaztransport Technigaz vs. MAG SILVER | Gaztransport Technigaz vs. MAGNUM MINING EXP |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |