Correlation Between RLX Technology and AULT Old
Can any of the company-specific risk be diversified away by investing in both RLX Technology and AULT Old 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 Technology and AULT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and AULT Old, you can compare the effects of market volatilities on RLX Technology and AULT Old 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 Technology with a short position of AULT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and AULT Old.
Diversification Opportunities for RLX Technology and AULT Old
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RLX and AULT is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and AULT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AULT Old and RLX Technology 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 Technology are associated (or correlated) with AULT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AULT Old has no effect on the direction of RLX Technology i.e., RLX Technology and AULT Old go up and down completely randomly.
Pair Corralation between RLX Technology and AULT Old
If you would invest 200.00 in RLX Technology on October 25, 2024 and sell it today you would earn a total of 24.00 from holding RLX Technology or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
RLX Technology vs. AULT Old
Performance |
| Timeline |
| RLX Technology |
| AULT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RLX Technology and AULT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and AULT Old
The main advantage of trading using opposite RLX Technology and AULT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, AULT Old 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 AULT Old will offset losses from the drop in AULT Old's long position.| RLX Technology vs. Green Globe International | RLX Technology vs. Kaival Brands Innovations | RLX Technology vs. Greenlane Holdings | RLX Technology vs. 22nd Century Group |
| AULT Old vs. Triton International Limited | AULT Old vs. Diageo PLC ADR | AULT Old vs. Herc Holdings | AULT Old vs. McGrath RentCorp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |