Correlation Between TELES Informationstech and Luckin Coffee
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By analyzing existing cross correlation between TELES Informationstechnologien AG and Luckin Coffee, you can compare the effects of market volatilities on TELES Informationstech 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 TELES Informationstech with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELES Informationstech and Luckin Coffee.
Diversification Opportunities for TELES Informationstech and Luckin Coffee
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TELES and Luckin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TELES Informationstechnologien and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and TELES Informationstech 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 TELES Informationstechnologien AG 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 TELES Informationstech i.e., TELES Informationstech and Luckin Coffee go up and down completely randomly.
Pair Corralation between TELES Informationstech and Luckin Coffee
Assuming the 90 days trading horizon TELES Informationstechnologien AG is expected to under-perform the Luckin Coffee. But the stock apears to be less risky and, when comparing its historical volatility, TELES Informationstechnologien AG is 1.87 times less risky than Luckin Coffee. The stock trades about -0.09 of its potential returns per unit of risk. The Luckin Coffee is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Luckin Coffee on September 3, 2024 and sell it today you would earn a total of 350.00 from holding Luckin Coffee or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TELES Informationstechnologien vs. Luckin Coffee
Performance |
| Timeline |
| TELES Informationstech |
| Luckin Coffee |
TELES Informationstech and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TELES Informationstech and Luckin Coffee
The main advantage of trading using opposite TELES Informationstech and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TELES Informationstech 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.| TELES Informationstech vs. BOSTON BEER A | TELES Informationstech vs. Monster Beverage Corp | TELES Informationstech vs. Tsingtao Brewery | TELES Informationstech vs. MOLSON RS BEVERAGE |
| Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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