Correlation Between Luckin Coffee and Bm Technologies
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Bm Technologies 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 Luckin Coffee and Bm Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Bm Technologies, you can compare the effects of market volatilities on Luckin Coffee and Bm Technologies 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 Luckin Coffee with a short position of Bm Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Bm Technologies.
Diversification Opportunities for Luckin Coffee and Bm Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luckin and BMTX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Bm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bm Technologies and Luckin Coffee 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 Luckin Coffee are associated (or correlated) with Bm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bm Technologies has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Bm Technologies go up and down completely randomly.
Pair Corralation between Luckin Coffee and Bm Technologies
If you would invest (100.00) in Luckin Coffee on January 30, 2024 and sell it today you would earn a total of 100.00 from holding Luckin Coffee or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Luckin Coffee vs. Bm Technologies
Performance |
Timeline |
Luckin Coffee |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bm Technologies |
Luckin Coffee and Bm Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luckin Coffee and Bm Technologies
The main advantage of trading using opposite Luckin Coffee and Bm Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Bm Technologies 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 Bm Technologies will offset losses from the drop in Bm Technologies' long position.Luckin Coffee vs. Artisan Partners Asset | Luckin Coffee vs. LanzaTech Global | Luckin Coffee vs. Hf Foods Group | Luckin Coffee vs. Hanover Foods |
Bm Technologies vs. Where Food Comes | Bm Technologies vs. eGain | Bm Technologies vs. Research Solutions | Bm Technologies vs. Infobird Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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