Correlation Between RLX Technology and Smoore International
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Smoore International 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 Smoore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Smoore International Holdings, you can compare the effects of market volatilities on RLX Technology and Smoore International 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 Smoore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Smoore International.
Diversification Opportunities for RLX Technology and Smoore International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RLX and Smoore is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Smoore International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smoore International 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 Smoore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smoore International has no effect on the direction of RLX Technology i.e., RLX Technology and Smoore International go up and down completely randomly.
Pair Corralation between RLX Technology and Smoore International
Considering the 90-day investment horizon RLX Technology is expected to generate 1.31 times less return on investment than Smoore International. But when comparing it to its historical volatility, RLX Technology is 1.31 times less risky than Smoore International. It trades about 0.0 of its potential returns per unit of risk. Smoore International Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Smoore International Holdings on August 29, 2024 and sell it today you would lose (53.00) from holding Smoore International Holdings or give up 30.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Smoore International Holdings
Performance |
| Timeline |
| RLX Technology |
| Smoore International |
RLX Technology and Smoore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Smoore International
The main advantage of trading using opposite RLX Technology and Smoore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Smoore International 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 Smoore International will offset losses from the drop in Smoore International'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 |
| Smoore International vs. Imperial Brands PLC | Smoore International vs. RLX Technology | Smoore International vs. British American Tobacco | Smoore International vs. Turning Point Brands |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |