Correlation Between RLX Technology and Pinterest
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Pinterest, you can compare the effects of market volatilities on RLX Technology and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Pinterest.
Diversification Opportunities for RLX Technology and Pinterest
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between RLX and Pinterest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of RLX Technology i.e., RLX Technology and Pinterest go up and down completely randomly.
Pair Corralation between RLX Technology and Pinterest
Considering the 90-day investment horizon RLX Technology is expected to generate 0.7 times more return on investment than Pinterest. However, RLX Technology is 1.43 times less risky than Pinterest. It trades about 0.37 of its potential returns per unit of risk. Pinterest is currently generating about -0.06 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Pinterest
Performance |
| Timeline |
| RLX Technology |
RLX Technology and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Pinterest
The main advantage of trading using opposite RLX Technology and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest'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 |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |