Correlation Between RLX TECH and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both RLX TECH and Compugroup Medical 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 Compugroup Medical 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 Compugroup Medical SE, you can compare the effects of market volatilities on RLX TECH and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX TECH and Compugroup Medical.
Diversification Opportunities for RLX TECH and Compugroup Medical
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RLX and Compugroup is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding RLX TECH SPADR1 and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of RLX TECH i.e., RLX TECH and Compugroup Medical go up and down completely randomly.
Pair Corralation between RLX TECH and Compugroup Medical
Assuming the 90 days horizon RLX TECH SPADR1 is expected to generate 0.87 times more return on investment than Compugroup Medical. However, RLX TECH SPADR1 is 1.16 times less risky than Compugroup Medical. It trades about 0.04 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.09 per unit of risk. If you would invest 163.00 in RLX TECH SPADR1 on September 4, 2024 and sell it today you would earn a total of 22.00 from holding RLX TECH SPADR1 or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX TECH SPADR1 vs. Compugroup Medical SE
Performance |
| Timeline |
| RLX TECH SPADR1 |
| Compugroup Medical |
RLX TECH and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX TECH and Compugroup Medical
The main advantage of trading using opposite RLX TECH and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX TECH position performs unexpectedly, Compugroup Medical 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 Compugroup Medical will offset losses from the drop in Compugroup Medical'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 |
| Compugroup Medical vs. 10X GENOMICS DL | Compugroup Medical vs. Teladoc | Compugroup Medical vs. Evolent Health | Compugroup Medical vs. RLX TECH SPADR1 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |