Correlation Between Luckin Coffee and INTERSHOP Communications
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By analyzing existing cross correlation between Luckin Coffee and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Luckin Coffee and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and INTERSHOP Communications.
Diversification Opportunities for Luckin Coffee and INTERSHOP Communications
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luckin and INTERSHOP is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Luckin Coffee and INTERSHOP Communications
Assuming the 90 days trading horizon Luckin Coffee is expected to generate 1.18 times more return on investment than INTERSHOP Communications. However, Luckin Coffee is 1.18 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.22 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.02 per unit of risk. If you would invest 2,540 in Luckin Coffee on November 7, 2024 and sell it today you would earn a total of 280.00 from holding Luckin Coffee or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Luckin Coffee |
| INTERSHOP Communications |
Luckin Coffee and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and INTERSHOP Communications
The main advantage of trading using opposite Luckin Coffee and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| Luckin Coffee vs. Acadia Healthcare | Luckin Coffee vs. Merit Medical Systems | Luckin Coffee vs. Advanced Medical Solutions | Luckin Coffee vs. MEDICAL FACILITIES NEW |
| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Uber Technologies | INTERSHOP Communications vs. Rocket Internet SE |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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