Correlation Between Ramaco Resources and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both Ramaco Resources 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 Ramaco Resources and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramaco Resources and Luckin Coffee, you can compare the effects of market volatilities on Ramaco Resources 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 Ramaco Resources with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramaco Resources and Luckin Coffee.
Diversification Opportunities for Ramaco Resources and Luckin Coffee
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ramaco and Luckin is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ramaco Resources and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and Ramaco Resources 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 Ramaco Resources 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 Ramaco Resources i.e., Ramaco Resources and Luckin Coffee go up and down completely randomly.
Pair Corralation between Ramaco Resources and Luckin Coffee
If you would invest 2,676 in Luckin Coffee on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Luckin Coffee or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Ramaco Resources vs. Luckin Coffee
Performance |
| Timeline |
| Ramaco Resources |
| Luckin Coffee |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ramaco Resources and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramaco Resources and Luckin Coffee
The main advantage of trading using opposite Ramaco Resources and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramaco Resources 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.| Ramaco Resources vs. Warrior Met Coal | Ramaco Resources vs. Arch Resources | Ramaco Resources vs. Alpha Metallurgical Resources | Ramaco Resources vs. American Resources Corp |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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