Correlation Between 10X GENOMICS and RLX TECH

Can any of the company-specific risk be diversified away by investing in both 10X GENOMICS and RLX TECH 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 10X GENOMICS and RLX TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 10X GENOMICS DL and RLX TECH SPADR1, you can compare the effects of market volatilities on 10X GENOMICS and RLX TECH 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 10X GENOMICS with a short position of RLX TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X GENOMICS and RLX TECH.

Diversification Opportunities for 10X GENOMICS and RLX TECH

-0.13

Correlation Coefficient

10X GENOMICS  RLX TECH

Good diversification

The 3 months correlation between 10X and RLX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding 10X GENOMICS DL and RLX TECH SPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX TECH SPADR1 and 10X GENOMICS 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 10X GENOMICS DL are associated (or correlated) with RLX TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX TECH SPADR1 has no effect on the direction of 10X GENOMICS i.e., 10X GENOMICS and RLX TECH go up and down completely randomly.

Pair Corralation between 10X GENOMICS and RLX TECH

Assuming the 90 days horizon 10X GENOMICS DL is expected to under-perform the RLX TECH. In addition to that, 10X GENOMICS is 1.2 times more volatile than RLX TECH SPADR1. It trades about -0.03 of its total potential returns per unit of risk. RLX TECH SPADR1 is currently generating about 0.01 per unit of volatility. If you would invest  249.00  in RLX TECH SPADR1 on October 12, 2024 and sell it today you would lose (39.00) from holding RLX TECH SPADR1 or give up 15.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

10X GENOMICS DL  vs.  RLX TECH SPADR1

10X GENOMICS DL

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 10X GENOMICS DL are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, 10X GENOMICS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

RLX TECH SPADR1

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RLX TECH SPADR1 are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, RLX TECH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 10X GENOMICS and RLX TECH

The main advantage of trading using opposite 10X GENOMICS and RLX TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X GENOMICS position performs unexpectedly, RLX TECH 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 RLX TECH will offset losses from the drop in RLX TECH's long position.

The idea behind 10X GENOMICS DL and RLX TECH SPADR1 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 CEOs Directory module to screen CEOs from public companies around the world.