Correlation Between RLX Technology and PT Gudang
Can any of the company-specific risk be diversified away by investing in both RLX Technology and PT Gudang 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 PT Gudang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and PT Gudang Garam, you can compare the effects of market volatilities on RLX Technology and PT Gudang 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 PT Gudang. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and PT Gudang.
Diversification Opportunities for RLX Technology and PT Gudang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RLX and GGNPF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and PT Gudang Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gudang Garam 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 PT Gudang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gudang Garam has no effect on the direction of RLX Technology i.e., RLX Technology and PT Gudang go up and down completely randomly.
Pair Corralation between RLX Technology and PT Gudang
Considering the 90-day investment horizon RLX Technology is expected to generate 2.68 times more return on investment than PT Gudang. However, RLX Technology is 2.68 times more volatile than PT Gudang Garam. It trades about -0.01 of its potential returns per unit of risk. PT Gudang Garam is currently generating about -0.07 per unit of risk. If you would invest 200.00 in RLX Technology on August 25, 2024 and sell it today you would lose (20.00) from holding RLX Technology or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. PT Gudang Garam
Performance |
| Timeline |
| RLX Technology |
| PT Gudang Garam |
RLX Technology and PT Gudang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and PT Gudang
The main advantage of trading using opposite RLX Technology and PT Gudang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, PT Gudang 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 PT Gudang will offset losses from the drop in PT Gudang's long position.| RLX Technology vs. Bellring Brands LLC | RLX Technology vs. Ingredion Incorporated | RLX Technology vs. John B Sanfilippo | RLX Technology vs. Nomad Foods |
| PT Gudang vs. British American Tobacco | PT Gudang vs. Imperial Brands PLC | PT Gudang vs. RLX Technology | PT Gudang vs. British American Tobacco |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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