Correlation Between RLX Technology and Dine Brands
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Dine Brands 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 Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Dine Brands Global, you can compare the effects of market volatilities on RLX Technology and Dine Brands 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 Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Dine Brands.
Diversification Opportunities for RLX Technology and Dine Brands
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RLX and Dine is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global 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 Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of RLX Technology i.e., RLX Technology and Dine Brands go up and down completely randomly.
Pair Corralation between RLX Technology and Dine Brands
Considering the 90-day investment horizon RLX Technology is expected to generate 0.6 times more return on investment than Dine Brands. However, RLX Technology is 1.66 times less risky than Dine Brands. It trades about 0.37 of its potential returns per unit of risk. Dine Brands Global is currently generating about 0.18 per unit of risk. 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Dine Brands Global
Performance |
| Timeline |
| RLX Technology |
| Dine Brands Global |
RLX Technology and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Dine Brands
The main advantage of trading using opposite RLX Technology and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' 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 |
| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |