Correlation Between Charlies Holdings and RLX Technology
Can any of the company-specific risk be diversified away by investing in both Charlies Holdings and RLX Technology 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 Charlies Holdings and RLX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charlies Holdings and RLX Technology, you can compare the effects of market volatilities on Charlies Holdings and RLX Technology 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 Charlies Holdings with a short position of RLX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charlies Holdings and RLX Technology.
Diversification Opportunities for Charlies Holdings and RLX Technology
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Charlies and RLX is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Charlies Holdings and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology and Charlies Holdings 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 Charlies Holdings are associated (or correlated) with RLX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX Technology has no effect on the direction of Charlies Holdings i.e., Charlies Holdings and RLX Technology go up and down completely randomly.
Pair Corralation between Charlies Holdings and RLX Technology
If you would invest 162.00 in RLX Technology on August 28, 2024 and sell it today you would earn a total of 21.00 from holding RLX Technology or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Charlies Holdings vs. RLX Technology
Performance |
| Timeline |
| Charlies Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| RLX Technology |
Charlies Holdings and RLX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charlies Holdings and RLX Technology
The main advantage of trading using opposite Charlies Holdings and RLX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charlies Holdings position performs unexpectedly, RLX Technology 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 Technology will offset losses from the drop in RLX Technology's long position.| Charlies Holdings vs. Pyxus International | Charlies Holdings vs. PT Hanjaya Mandala | Charlies Holdings vs. Greenlane Holdings | Charlies Holdings vs. Japan Tobacco ADR |
| RLX Technology vs. Bellring Brands LLC | RLX Technology vs. Ingredion Incorporated | RLX Technology vs. Nomad Foods | RLX Technology vs. Simply Good Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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