Correlation Between NYSE Composite and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Luokung Technology 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 NYSE Composite and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Luokung Technology Corp, you can compare the effects of market volatilities on NYSE Composite and Luokung Technology 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 NYSE Composite with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Luokung Technology.
Diversification Opportunities for NYSE Composite and Luokung Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Luokung is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Luokung Technology go up and down completely randomly.
Pair Corralation between NYSE Composite and Luokung Technology
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.12 times more return on investment than Luokung Technology. However, NYSE Composite is 8.25 times less risky than Luokung Technology. It trades about 0.08 of its potential returns per unit of risk. Luokung Technology Corp is currently generating about -0.08 per unit of risk. If you would invest 1,521,826 in NYSE Composite on September 14, 2024 and sell it today you would earn a total of 455,083 from holding NYSE Composite or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Luokung Technology Corp
Performance |
| Timeline |
NYSE Composite and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Luokung Technology Corp
Pair trading matchups for Luokung Technology
Pair Trading with NYSE Composite and Luokung Technology
The main advantage of trading using opposite NYSE Composite and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.| NYSE Composite vs. Air Products and | NYSE Composite vs. Allient | NYSE Composite vs. Ecovyst | NYSE Composite vs. CTS Corporation |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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