Correlation Between Luckin Coffee and Ming Le
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Ming Le 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 Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Ming Le Sports, you can compare the effects of market volatilities on Luckin Coffee and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Ming Le.
Diversification Opportunities for Luckin Coffee and Ming Le
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luckin and Ming is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports 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 Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Ming Le go up and down completely randomly.
Pair Corralation between Luckin Coffee and Ming Le
If you would invest 2,300 in Luckin Coffee on October 20, 2024 and sell it today you would earn a total of 200.00 from holding Luckin Coffee or generate 8.7% 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. Ming Le Sports
Performance |
| Timeline |
| Luckin Coffee |
| Ming Le Sports |
Luckin Coffee and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and Ming Le
The main advantage of trading using opposite Luckin Coffee and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| Luckin Coffee vs. MOLSON RS BEVERAGE | Luckin Coffee vs. National Beverage Corp | Luckin Coffee vs. Ross Stores | Luckin Coffee vs. BRIT AMER TOBACCO |
| Ming Le vs. Alfa Financial Software | Ming Le vs. Mitsubishi Materials | Ming Le vs. Unity Software | Ming Le vs. THRACE PLASTICS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |