Correlation Between Luokung Technology and Trust Stamp
Can any of the company-specific risk be diversified away by investing in both Luokung Technology and Trust Stamp 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 Trust Stamp 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 Trust Stamp, you can compare the effects of market volatilities on Luokung Technology and Trust Stamp 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 Trust Stamp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luokung Technology and Trust Stamp.
Diversification Opportunities for Luokung Technology and Trust Stamp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luokung and Trust is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Luokung Technology Corp and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp 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 Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of Luokung Technology i.e., Luokung Technology and Trust Stamp go up and down completely randomly.
Pair Corralation between Luokung Technology and Trust Stamp
Given the investment horizon of 90 days Luokung Technology Corp is expected to under-perform the Trust Stamp. But the stock apears to be less risky and, when comparing its historical volatility, Luokung Technology Corp is 1.85 times less risky than Trust Stamp. The stock trades about -0.04 of its potential returns per unit of risk. The Trust Stamp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Trust Stamp on September 14, 2024 and sell it today you would lose (108.98) from holding Trust Stamp or give up 74.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luokung Technology Corp vs. Trust Stamp
Performance |
| Timeline |
| Luokung Technology Corp |
| Trust Stamp |
Luokung Technology and Trust Stamp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luokung Technology and Trust Stamp
The main advantage of trading using opposite Luokung Technology and Trust Stamp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luokung Technology position performs unexpectedly, Trust Stamp 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 Trust Stamp will offset losses from the drop in Trust Stamp's long position.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
| Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |