Correlation Between RLX Technology and CIMG
Can any of the company-specific risk be diversified away by investing in both RLX Technology and CIMG 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 CIMG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and CIMG Inc, you can compare the effects of market volatilities on RLX Technology and CIMG 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 CIMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and CIMG.
Diversification Opportunities for RLX Technology and CIMG
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RLX and CIMG is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and CIMG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMG Inc 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 CIMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMG Inc has no effect on the direction of RLX Technology i.e., RLX Technology and CIMG go up and down completely randomly.
Pair Corralation between RLX Technology and CIMG
Considering the 90-day investment horizon RLX Technology is expected to generate 20.12 times less return on investment than CIMG. But when comparing it to its historical volatility, RLX Technology is 20.07 times less risky than CIMG. It trades about 0.07 of its potential returns per unit of risk. CIMG Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 124.00 in CIMG Inc on August 28, 2024 and sell it today you would lose (61.00) from holding CIMG Inc or give up 49.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. CIMG Inc
Performance |
| Timeline |
| RLX Technology |
| CIMG Inc |
RLX Technology and CIMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and CIMG
The main advantage of trading using opposite RLX Technology and CIMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, CIMG 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 CIMG will offset losses from the drop in CIMG's long position.| RLX Technology vs. Bellring Brands LLC | RLX Technology vs. Ingredion Incorporated | RLX Technology vs. Nomad Foods | RLX Technology vs. Simply Good Foods |
| CIMG vs. RLX Technology | CIMG vs. First Ship Lease | CIMG vs. Willamette Valley Vineyards | CIMG vs. Keurig Dr Pepper |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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