Correlation Between Oncternal Therapeutics and Luckin Coffee

Can any of the company-specific risk be diversified away by investing in both Oncternal Therapeutics 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 Oncternal Therapeutics and Luckin Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oncternal Therapeutics and Luckin Coffee, you can compare the effects of market volatilities on Oncternal Therapeutics 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 Oncternal Therapeutics with a short position of Luckin Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncternal Therapeutics and Luckin Coffee.

Diversification Opportunities for Oncternal Therapeutics and Luckin Coffee

0.0

Correlation Coefficient

Oncternal Therapeutics  Luckin Coffee

Pay attention - limited upside

The 3 months correlation between Oncternal and Luckin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oncternal Therapeutics and Luckin Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luckin Coffee and Oncternal Therapeutics 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 Oncternal Therapeutics 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 Oncternal Therapeutics i.e., Oncternal Therapeutics and Luckin Coffee go up and down completely randomly.

Pair Corralation between Oncternal Therapeutics and Luckin Coffee

If you would invest  600.00  in Oncternal Therapeutics on February 21, 2024 and sell it today you would earn a total of  260.00  from holding Oncternal Therapeutics or generate 43.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Oncternal Therapeutics  vs.  Luckin Coffee

Oncternal Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncternal Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Oncternal Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Luckin Coffee

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Luckin Coffee has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Luckin Coffee is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Oncternal Therapeutics and Luckin Coffee

The main advantage of trading using opposite Oncternal Therapeutics and Luckin Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncternal Therapeutics 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.

The idea behind Oncternal Therapeutics and Luckin Coffee pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.