Correlation Between RLX Technology and Mader Group
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Mader Group 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 Mader Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Mader Group Limited, you can compare the effects of market volatilities on RLX Technology and Mader Group 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 Mader Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Mader Group.
Diversification Opportunities for RLX Technology and Mader Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between RLX and Mader is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Mader Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mader Group Limited 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 Mader Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mader Group Limited has no effect on the direction of RLX Technology i.e., RLX Technology and Mader Group go up and down completely randomly.
Pair Corralation between RLX Technology and Mader Group
If you would invest 201.00 in RLX Technology on October 22, 2024 and sell it today you would earn a total of 26.00 from holding RLX Technology or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Mader Group Limited
Performance |
| Timeline |
| RLX Technology |
| Mader Group Limited |
RLX Technology and Mader Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Mader Group
The main advantage of trading using opposite RLX Technology and Mader Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Mader Group 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 Mader Group will offset losses from the drop in Mader Group'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 |
| Mader Group vs. Modine Manufacturing | Mader Group vs. RLX Technology | Mader Group vs. U Power Limited | Mader Group vs. Altria 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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