Correlation Between Luokung Technology and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Luokung Technology and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Luokung Technology and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luokung Technology and Dow Jones.
Diversification Opportunities for Luokung Technology and Dow Jones
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luokung and Dow is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Luokung Technology Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Luokung Technology i.e., Luokung Technology and Dow Jones go up and down completely randomly.
Pair Corralation between Luokung Technology and Dow Jones
Given the investment horizon of 90 days Luokung Technology Corp is expected to generate 6.77 times more return on investment than Dow Jones. However, Luokung Technology is 6.77 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.02 per unit of risk. If you would invest 177.00 in Luokung Technology Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Luokung Technology Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luokung Technology Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Luokung Technology and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Luokung Technology Corp
Pair trading matchups for Luokung Technology
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Luokung Technology and Dow Jones
The main advantage of trading using opposite Luokung Technology and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luokung Technology position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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