Correlation Between MCEWEN MINING and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both MCEWEN MINING 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 MCEWEN MINING and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCEWEN MINING INC and Luckin Coffee, you can compare the effects of market volatilities on MCEWEN MINING 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 MCEWEN MINING with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCEWEN MINING and Luckin Coffee.
Diversification Opportunities for MCEWEN MINING and Luckin Coffee
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCEWEN and Luckin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding MCEWEN MINING INC and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and MCEWEN MINING 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 MCEWEN MINING INC 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 MCEWEN MINING i.e., MCEWEN MINING and Luckin Coffee go up and down completely randomly.
Pair Corralation between MCEWEN MINING and Luckin Coffee
Assuming the 90 days horizon MCEWEN MINING is expected to generate 1.26 times less return on investment than Luckin Coffee. But when comparing it to its historical volatility, MCEWEN MINING INC is 1.54 times less risky than Luckin Coffee. It trades about 0.17 of its potential returns per unit of risk. Luckin Coffee is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Luckin Coffee on October 20, 2024 and sell it today you would earn a total of 200.00 from holding Luckin Coffee or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCEWEN MINING INC vs. Luckin Coffee
Performance |
| Timeline |
| MCEWEN MINING INC |
| Luckin Coffee |
MCEWEN MINING and Luckin Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCEWEN MINING and Luckin Coffee
The main advantage of trading using opposite MCEWEN MINING and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCEWEN MINING 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.| MCEWEN MINING vs. LOANDEPOT INC A | MCEWEN MINING vs. Canon Marketing Japan | MCEWEN MINING vs. H2O Retailing | MCEWEN MINING vs. Indutrade AB |
| Luckin Coffee vs. MOLSON RS BEVERAGE | Luckin Coffee vs. National Beverage Corp | Luckin Coffee vs. Ross Stores | Luckin Coffee vs. BRIT AMER TOBACCO |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |