Correlation Between RLX Technology and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Nextplat Corp 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 Nextplat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Nextplat Corp, you can compare the effects of market volatilities on RLX Technology and Nextplat Corp 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 Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Nextplat Corp.
Diversification Opportunities for RLX Technology and Nextplat Corp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RLX and Nextplat is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp 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 Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of RLX Technology i.e., RLX Technology and Nextplat Corp go up and down completely randomly.
Pair Corralation between RLX Technology and Nextplat Corp
Considering the 90-day investment horizon RLX Technology is expected to generate 0.35 times more return on investment than Nextplat Corp. However, RLX Technology is 2.85 times less risky than Nextplat Corp. It trades about 0.33 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.12 per unit of risk. If you would invest 163.00 in RLX Technology on August 31, 2024 and sell it today you would earn a total of 32.00 from holding RLX Technology or generate 19.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Nextplat Corp
Performance |
| Timeline |
| RLX Technology |
| Nextplat Corp |
RLX Technology and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Nextplat Corp
The main advantage of trading using opposite RLX Technology and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp'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 |
| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| 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 | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |