Correlation Between Omni Health and RLX Technology
Can any of the company-specific risk be diversified away by investing in both Omni Health 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 Omni Health and RLX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Health and RLX Technology, you can compare the effects of market volatilities on Omni Health 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 Omni Health with a short position of RLX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Health and RLX Technology.
Diversification Opportunities for Omni Health and RLX Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and RLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Omni Health and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology and Omni Health 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 Omni Health 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 Omni Health i.e., Omni Health and RLX Technology go up and down completely randomly.
Pair Corralation between Omni Health and RLX Technology
If you would invest 162.00 in RLX Technology on September 4, 2024 and sell it today you would earn a total of 35.00 from holding RLX Technology or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Omni Health vs. RLX Technology
Performance |
| Timeline |
| Omni Health |
| RLX Technology |
Omni Health and RLX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Health and RLX Technology
The main advantage of trading using opposite Omni Health and RLX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Health 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.| Omni Health vs. Caf Serendipity Holdings | Omni Health vs. Green Cures Botanical | Omni Health vs. Vapor Group | Omni Health vs. Ubiquitech Software |
| RLX Technology vs. Green Globe International | RLX Technology vs. Kaival Brands Innovations | RLX Technology vs. Greenlane Holdings | RLX Technology vs. 22nd Century Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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