Correlation Between RLX Technology and EOANGR

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

By analyzing existing cross correlation between RLX Technology and EOANGR 665 30 APR 38, you can compare the effects of market volatilities on RLX Technology and EOANGR 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 RLX Technology with a short position of EOANGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and EOANGR.

Diversification Opportunities for RLX Technology and EOANGR

-0.77

Correlation Coefficient

RLX Technology  EOANGR

Pay attention - limited upside

The 3 months correlation between RLX and EOANGR is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and EOANGR 665 30 APR 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOANGR 665 30 and RLX Technology 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 RLX Technology are associated (or correlated) with EOANGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOANGR 665 30 has no effect on the direction of RLX Technology i.e., RLX Technology and EOANGR go up and down completely randomly.

Pair Corralation between RLX Technology and EOANGR

Considering the 90-day investment horizon RLX Technology is expected to generate 2.17 times less return on investment than EOANGR. In addition to that, RLX Technology is 1.2 times more volatile than EOANGR 665 30 APR 38. It trades about 0.15 of its total potential returns per unit of risk. EOANGR 665 30 APR 38 is currently generating about 0.38 per unit of volatility. If you would invest  10,553  in EOANGR 665 30 APR 38 on October 27, 2024 and sell it today you would earn a total of  674.00  from holding EOANGR 665 30 APR 38 or generate 6.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	57.89%
Values	Daily Returns

RLX Technology  vs.  EOANGR 665 30 APR 38

RLX Technology

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RLX Technology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent essential indicators, RLX Technology showed solid returns over the last few months and may actually be approaching a breakup point.

EOANGR 665 30

Risk-Adjusted Performance

6 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EOANGR 665 30 APR 38 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOANGR may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with RLX Technology and EOANGR

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

The idea behind RLX Technology and EOANGR 665 30 APR 38 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.