Correlation Between Luckin Coffee and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and Jeffs Brands 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 Jeffs Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and Jeffs Brands, you can compare the effects of market volatilities on Luckin Coffee and Jeffs Brands 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 Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and Jeffs Brands.
Diversification Opportunities for Luckin Coffee and Jeffs Brands
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luckin and Jeffs is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands 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 Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and Jeffs Brands go up and down completely randomly.
Pair Corralation between Luckin Coffee and Jeffs Brands
Assuming the 90 days horizon Luckin Coffee is expected to generate 0.34 times more return on investment than Jeffs Brands. However, Luckin Coffee is 2.94 times less risky than Jeffs Brands. It trades about -0.01 of its potential returns per unit of risk. Jeffs Brands is currently generating about -0.06 per unit of risk. If you would invest 3,677 in Luckin Coffee on September 6, 2025 and sell it today you would lose (92.00) from holding Luckin Coffee or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. Jeffs Brands
Performance |
| Timeline |
| Luckin Coffee |
| Jeffs Brands |
Luckin Coffee and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and Jeffs Brands
The main advantage of trading using opposite Luckin Coffee and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.| Luckin Coffee vs. McDonalds | Luckin Coffee vs. Starbucks | Luckin Coffee vs. Yum Brands | Luckin Coffee vs. Chipotle Mexican Grill |
| Jeffs Brands vs. Data Evolution Holdings | Jeffs Brands vs. Data3 Limited | Jeffs Brands vs. General Datacomm Industries | Jeffs Brands vs. Datatec Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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