Correlation Between Luckin Coffee and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and AOI Electronics 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 AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and AOI Electronics Co, you can compare the effects of market volatilities on Luckin Coffee and AOI Electronics 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 AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and AOI Electronics.
Diversification Opportunities for Luckin Coffee and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luckin and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics 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 AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and AOI Electronics go up and down completely randomly.
Pair Corralation between Luckin Coffee and AOI Electronics
If you would invest 2,120 in Luckin Coffee on August 29, 2024 and sell it today you would lose (20.00) from holding Luckin Coffee or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Luckin Coffee vs. AOI Electronics Co
Performance |
| Timeline |
| Luckin Coffee |
| AOI Electronics |
Luckin Coffee and AOI Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and AOI Electronics
The main advantage of trading using opposite Luckin Coffee and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.| Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc |
| AOI Electronics vs. NVIDIA | AOI Electronics vs. Taiwan Semiconductor Manufacturing | AOI Electronics vs. Texas Instruments Incorporated | AOI Electronics vs. Advanced Micro Devices |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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