Correlation Between Luckin Coffee and Magnachip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Magnachip Semiconductor 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 Magnachip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Magnachip Semiconductor, you can compare the effects of market volatilities on Luckin Coffee and Magnachip Semiconductor 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 Magnachip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Magnachip Semiconductor.
Diversification Opportunities for Luckin Coffee and Magnachip Semiconductor
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Luckin and Magnachip is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Magnachip Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnachip Semiconductor 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 Magnachip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnachip Semiconductor has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Magnachip Semiconductor go up and down completely randomly.
Pair Corralation between Luckin Coffee and Magnachip Semiconductor
Assuming the 90 days trading horizon Luckin Coffee is expected to generate 0.79 times more return on investment than Magnachip Semiconductor. However, Luckin Coffee is 1.27 times less risky than Magnachip Semiconductor. It trades about -0.01 of its potential returns per unit of risk. Magnachip Semiconductor is currently generating about -0.12 per unit of risk. If you would invest 3,280 in Luckin Coffee on August 14, 2025 and sell it today you would lose (80.00) from holding Luckin Coffee or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Luckin Coffee vs. Magnachip Semiconductor
Performance |
| Timeline |
| Luckin Coffee |
| Magnachip Semiconductor |
Luckin Coffee and Magnachip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and Magnachip Semiconductor
The main advantage of trading using opposite Luckin Coffee and Magnachip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Magnachip Semiconductor 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 Magnachip Semiconductor will offset losses from the drop in Magnachip Semiconductor's long position.| Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc | Luckin Coffee vs. Apple Inc |
| Magnachip Semiconductor vs. Globex Mining Enterprises | Magnachip Semiconductor vs. CSSC Offshore Marine | Magnachip Semiconductor vs. Canon Marketing Japan | Magnachip Semiconductor vs. Warner Music Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |