Correlation Between CITY OFFICE and RLX TECH
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE 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 CITY OFFICE and RLX TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and RLX TECH SPADR1, you can compare the effects of market volatilities on CITY OFFICE 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 CITY OFFICE with a short position of RLX TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and RLX TECH.
Diversification Opportunities for CITY OFFICE and RLX TECH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITY and RLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT 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 CITY OFFICE 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 CITY OFFICE REIT 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 CITY OFFICE i.e., CITY OFFICE and RLX TECH go up and down completely randomly.
Pair Corralation between CITY OFFICE and RLX TECH
If you would invest (100.00) in RLX TECH SPADR1 on November 1, 2024 and sell it today you would earn a total of 100.00 from holding RLX TECH SPADR1 or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. RLX TECH SPADR1
Performance |
| Timeline |
| CITY OFFICE REIT |
| RLX TECH SPADR1 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CITY OFFICE and RLX TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and RLX TECH
The main advantage of trading using opposite CITY OFFICE and RLX TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE 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.| CITY OFFICE vs. Japan Post Insurance | CITY OFFICE vs. Zurich Insurance Group | CITY OFFICE vs. BII Railway Transportation | CITY OFFICE vs. Broadcom |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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