Correlation Between Luckin Coffee and SD Standard
Can any of the company-specific risk be diversified away by investing in both Luckin Coffee and SD Standard 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 SD Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luckin Coffee and SD Standard Drilling, you can compare the effects of market volatilities on Luckin Coffee and SD Standard 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 SD Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luckin Coffee and SD Standard.
Diversification Opportunities for Luckin Coffee and SD Standard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luckin and SDSDF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luckin Coffee and SD Standard Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SD Standard Drilling 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 SD Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SD Standard Drilling has no effect on the direction of Luckin Coffee i.e., Luckin Coffee and SD Standard go up and down completely randomly.
Pair Corralation between Luckin Coffee and SD Standard
If you would invest 15.00 in SD Standard Drilling on September 3, 2025 and sell it today you would earn a total of 0.00 from holding SD Standard Drilling or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luckin Coffee vs. SD Standard Drilling
Performance |
| Timeline |
| Luckin Coffee |
| SD Standard Drilling |
Luckin Coffee and SD Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luckin Coffee and SD Standard
The main advantage of trading using opposite Luckin Coffee and SD Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luckin Coffee position performs unexpectedly, SD Standard 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 SD Standard will offset losses from the drop in SD Standard's long position.| Luckin Coffee vs. Zurich Insurance Group | Luckin Coffee vs. Selective Insurance Group | Luckin Coffee vs. Global Crossing Airlines | Luckin Coffee vs. American Coastal Insurance |
| SD Standard vs. ARIA Wireless Systems | SD Standard vs. Pacific Online Limited | SD Standard vs. T Mobile US, 6250 | SD Standard vs. Wireless Xcessories 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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