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
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 10X and RLX is -0.29. 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 is expected to generate 18.81 times less return on investment than RLX TECH. In addition to that, 10X GENOMICS is 2.57 times more volatile than RLX TECH SPADR1. It trades about 0.01 of its total potential returns per unit of risk. RLX TECH SPADR1 is currently generating about 0.5 per unit of volatility. If you would invest 146.00 in RLX TECH SPADR1 on September 4, 2024 and sell it today you would earn a total of 39.00 from holding RLX TECH SPADR1 or generate 26.71% return on investment 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
Performance |
| Timeline |
| 10X GENOMICS DL |
| RLX TECH SPADR1 |
10X GENOMICS and RLX TECH Volatility Contrast
Predicted Return Density |
| Returns |
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.| 10X GENOMICS vs. Zoom Video Communications | 10X GENOMICS vs. INTERSHOP Communications Aktiengesellschaft | 10X GENOMICS vs. Verizon Communications | 10X GENOMICS vs. Cogent Communications Holdings |
| RLX TECH vs. Transport International Holdings | RLX TECH vs. USWE SPORTS AB | RLX TECH vs. JD SPORTS FASH | RLX TECH vs. CapitaLand Investment 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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