Correlation Between Luokung Technology and Auddia
Can any of the company-specific risk be diversified away by investing in both Luokung Technology and Auddia 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 Luokung Technology and Auddia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luokung Technology Corp and Auddia Inc, you can compare the effects of market volatilities on Luokung Technology and Auddia 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 Luokung Technology with a short position of Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luokung Technology and Auddia.
Diversification Opportunities for Luokung Technology and Auddia
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luokung and Auddia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Luokung Technology Corp and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and Luokung Technology 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 Luokung Technology Corp are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Luokung Technology i.e., Luokung Technology and Auddia go up and down completely randomly.
Pair Corralation between Luokung Technology and Auddia
Given the investment horizon of 90 days Luokung Technology Corp is expected to generate 0.71 times more return on investment than Auddia. However, Luokung Technology Corp is 1.41 times less risky than Auddia. It trades about 0.08 of its potential returns per unit of risk. Auddia Inc is currently generating about 0.02 per unit of risk. If you would invest 169.00 in Luokung Technology Corp on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Luokung Technology Corp or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luokung Technology Corp vs. Auddia Inc
Performance |
| Timeline |
| Luokung Technology Corp |
| Auddia Inc |
Luokung Technology and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luokung Technology and Auddia
The main advantage of trading using opposite Luokung Technology and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luokung Technology position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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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