Luckin Coffee Volatility

We have found zero technical indicators for Luckin Coffee, which you can use to evaluate the volatility of the firm.
  
Luckin Coffee Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Luckin daily returns, and it is calculated using variance and standard deviation. We also use Luckin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Luckin Coffee volatility.

Luckin Coffee Stock Volatility Analysis

Volatility refers to the frequency at which Luckin Coffee delisted stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Luckin Coffee's price changes. Investors will then calculate the volatility of Luckin Coffee's stock to predict their future moves. A delisted stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile delisted stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Luckin Coffee's volatility:

Historical Volatility

This type of delisted stock volatility measures Luckin Coffee's fluctuations based on previous trends. It's commonly used to predict Luckin Coffee's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Luckin Coffee's current market price. This means that the delisted stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Luckin Coffee's to be redeemed at a future date.
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Luckin Coffee Projected Return Density Against Market

Allowing for the 90-day total investment horizon Luckin Coffee has a beta that is very close to zero . This indicates the returns on NYSE COMPOSITE and Luckin Coffee do not appear to be very sensitive.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Luckin Coffee or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Luckin Coffee's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Luckin delisted stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
It does not look like Luckin Coffee's alpha can have any bearing on the current valuation.
   Predicted Return Density   
       Returns  
Luckin Coffee's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how luckin stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Luckin Coffee Price Volatility?

Several factors can influence a delisted stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Luckin Coffee Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Luckin Coffee is 0.0. The daily returns are distributed with a variance of 0.0 and standard deviation of 0.0. The mean deviation of Luckin Coffee is currently at 0.0. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.00
β
Beta against NYSE Composite0.00
σ
Overall volatility
0.00
Ir
Information ratio 0.00

Luckin Coffee Stock Return Volatility

Luckin Coffee historical daily return volatility represents how much of Luckin Coffee delisted stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 0.0% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

Luckin Coffee Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.57 and is 9.223372036854776E16 times more volatile than Luckin Coffee. 0 percent of all equities and portfolios are less risky than Luckin Coffee. You can use Luckin Coffee to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Luckin Coffee to be traded at $0.0 in 90 days.

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Luckin Coffee Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Luckin Coffee as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Luckin Coffee's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Luckin Coffee's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Luckin Coffee.
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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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