Correlation Between NYSE Composite and Luckin Coffee
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Luckin Coffee, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Luckin Coffee.
Diversification Opportunities for NYSE Composite and Luckin Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Luckin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Luckin Coffee go up and down completely randomly.
Pair Corralation between NYSE Composite and Luckin Coffee
If you would invest (100.00) in Luckin Coffee on January 31, 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 |
NYSE Composite vs. Luckin Coffee
Performance |
Timeline |
NYSE Composite and Luckin Coffee Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Luckin Coffee
Pair trading matchups for Luckin Coffee
Pair Trading with NYSE Composite and Luckin Coffee
The main advantage of trading using opposite NYSE Composite and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.NYSE Composite vs. CECO Environmental Corp | NYSE Composite vs. Air Lease | NYSE Composite vs. Artisan Partners Asset | NYSE Composite vs. Iris Acquisition Corp |
Luckin Coffee vs. Dave Busters Entertainment | Luckin Coffee vs. Oncternal Therapeutics | Luckin Coffee vs. Calliditas Therapeutics | Luckin Coffee vs. Biglari Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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