Correlation Between Luckin Coffee and Griffon
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Griffon 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 Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Griffon, you can compare the effects of market volatilities on Luckin Coffee and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Griffon.
Diversification Opportunities for Luckin Coffee and Griffon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luckin and Griffon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Griffon go up and down completely randomly.
Pair Corralation between Luckin Coffee and Griffon
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 |
Luckin Coffee vs. Griffon
Performance |
Timeline |
Luckin Coffee |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Griffon |
Luckin Coffee and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luckin Coffee and Griffon
The main advantage of trading using opposite Luckin Coffee and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.Luckin Coffee vs. Dave Busters Entertainment | Luckin Coffee vs. Oncternal Therapeutics | Luckin Coffee vs. Calliditas Therapeutics | Luckin Coffee vs. Biglari Holdings |
Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |