Luckin Coffee Correlations
The correlation of Luckin Coffee is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Luckin Coffee moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Luckin Coffee moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. Luckin |
The ability to find closely correlated positions to Luckin Coffee could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Luckin Coffee when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Luckin Coffee - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Luckin Coffee to buy it.
Related Correlations Analysis
| 0.0 | 0.41 | 0.09 | 0.05 | -0.18 | 0.0 | DEO | ||
| 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -1.0 | NCTW | ||
| 0.41 | 0.0 | -0.52 | 0.58 | -0.58 | 0.0 | ABRMF | ||
| 0.09 | 0.0 | -0.52 | -0.62 | 0.78 | 0.0 | CELH | ||
| 0.05 | 0.0 | 0.58 | -0.62 | -0.54 | 0.0 | LOMLF | ||
| -0.18 | 0.0 | -0.58 | 0.78 | -0.54 | 0.0 | STZ | ||
| 0.0 | -1.0 | 0.0 | 0.0 | 0.0 | 0.0 | GZITF | ||
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Luckin Stock performing well and Luckin Coffee Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Luckin Coffee's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| DEO | 0.82 | (0.12) | 0.00 | (0.13) | 0.00 | 1.38 | 5.05 | |||
| NCTW | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| ABRMF | 1.77 | (0.67) | 0.00 | 1.84 | 0.00 | 0.00 | 24.00 | |||
| CELH | 2.75 | 0.56 | 0.18 | 0.79 | 2.73 | 5.62 | 28.98 | |||
| LOMLF | 3.52 | (0.60) | 0.00 | (0.80) | 0.00 | 6.90 | 28.71 | |||
| STZ | 0.69 | 0.02 | 0.00 | 0.11 | 0.93 | 1.66 | 5.74 | |||
| GZITF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Luckin Coffee Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Luckin Coffee stock to make a market-neutral strategy. Peer analysis of Luckin Coffee could also be used in its relative valuation, which is a method of valuing Luckin Coffee by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Still Interested in Luckin Coffee?
Investing in delisted delisted stocks can be risky, as the stock is no longer traded on a public exchange and can therefore be difficult to sell. Delisting typically occurs when a company has failed to meet exchange requirements or has been acquired. Before investing, it's important to thoroughly research the company, including its financial health and prospects for the future, as well as the reasons for its delisting. Additionally, it may be difficult to find accurate and up-to-date information on the company and its stock.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Consideration for investing in Luckin Stock
If you are still planning to invest in Luckin Coffee check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Luckin Coffee's history and understand the potential risks before investing.
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