Correlation Between Grayscale Litecoin Trust and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both Grayscale Litecoin Trust and Luckin Coffee 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 Grayscale Litecoin Trust and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Litecoin Trust and Luckin Coffee, you can compare the effects of market volatilities on Grayscale Litecoin Trust and Luckin Coffee 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 Grayscale Litecoin Trust with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Litecoin Trust and Luckin Coffee.
Diversification Opportunities for Grayscale Litecoin Trust and Luckin Coffee
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grayscale and Luckin is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Litecoin Trust and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and Grayscale Litecoin Trust 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 Grayscale Litecoin Trust are associated (or correlated) with Luckin Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luckin Coffee has no effect on the direction of Grayscale Litecoin Trust i.e., Grayscale Litecoin Trust and Luckin Coffee go up and down completely randomly.
Pair Corralation between Grayscale Litecoin Trust and Luckin Coffee
If you would invest 1,472 in Grayscale Litecoin Trust on September 5, 2024 and sell it today you would earn a total of 525.00 from holding Grayscale Litecoin Trust or generate 35.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Grayscale Litecoin Trust vs. Luckin Coffee
Performance |
| Timeline |
| Grayscale Litecoin Trust |
| Luckin Coffee |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Litecoin Trust and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Litecoin Trust and Luckin Coffee
The main advantage of trading using opposite Grayscale Litecoin Trust and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Litecoin Trust position performs unexpectedly, Luckin Coffee 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 Luckin Coffee will offset losses from the drop in Luckin Coffee's long position.| Grayscale Litecoin Trust vs. First Tractor | Grayscale Litecoin Trust vs. Ag Growth International | Grayscale Litecoin Trust vs. AmeraMex International | Grayscale Litecoin Trust vs. Arts Way Manufacturing Co |
| Luckin Coffee vs. Shake Shack | Luckin Coffee vs. Dominos Pizza | Luckin Coffee vs. Papa Johns International | Luckin Coffee vs. Chipotle Mexican Grill |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |