Correlation Between RLX TECH and NIGHTINGALE HEALTH
Can any of the company-specific risk be diversified away by investing in both RLX TECH and NIGHTINGALE HEALTH 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 TECH and NIGHTINGALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX TECH SPADR1 and NIGHTINGALE HEALTH EO, you can compare the effects of market volatilities on RLX TECH and NIGHTINGALE HEALTH 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 TECH with a short position of NIGHTINGALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX TECH and NIGHTINGALE HEALTH.
Diversification Opportunities for RLX TECH and NIGHTINGALE HEALTH
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RLX and NIGHTINGALE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding RLX TECH SPADR1 and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH and RLX TECH 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 TECH SPADR1 are associated (or correlated) with NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of RLX TECH i.e., RLX TECH and NIGHTINGALE HEALTH go up and down completely randomly.
Pair Corralation between RLX TECH and NIGHTINGALE HEALTH
Assuming the 90 days horizon RLX TECH SPADR1 is expected to generate 0.69 times more return on investment than NIGHTINGALE HEALTH. However, RLX TECH SPADR1 is 1.45 times less risky than NIGHTINGALE HEALTH. It trades about 0.5 of its potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about -0.19 per unit of risk. 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
RLX TECH SPADR1 vs. NIGHTINGALE HEALTH EO
Performance |
| Timeline |
| RLX TECH SPADR1 |
| NIGHTINGALE HEALTH |
RLX TECH and NIGHTINGALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX TECH and NIGHTINGALE HEALTH
The main advantage of trading using opposite RLX TECH and NIGHTINGALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX TECH position performs unexpectedly, NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH will offset losses from the drop in NIGHTINGALE HEALTH's long position.| RLX TECH vs. Transport International Holdings | RLX TECH vs. USWE SPORTS AB | RLX TECH vs. JD SPORTS FASH | RLX TECH vs. CapitaLand Investment Limited |
| NIGHTINGALE HEALTH vs. ANTA SPORTS PRODUCT | NIGHTINGALE HEALTH vs. NH HOTEL GROUP | NIGHTINGALE HEALTH vs. COVIVIO HOTELS INH | NIGHTINGALE HEALTH vs. Ultra Clean Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |