Correlation Between RLX Technology and Sogou
Can any of the company-specific risk be diversified away by investing in both RLX Technology and Sogou 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 Sogou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Sogou Inc, you can compare the effects of market volatilities on RLX Technology and Sogou 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 Sogou. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Sogou.
Diversification Opportunities for RLX Technology and Sogou
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RLX and Sogou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Sogou Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogou 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 Sogou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogou Inc has no effect on the direction of RLX Technology i.e., RLX Technology and Sogou go up and down completely randomly.
Pair Corralation between RLX Technology and Sogou
If you would invest 160.00 in RLX Technology on September 12, 2024 and sell it today you would earn a total of 39.00 from holding RLX Technology or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
RLX Technology vs. Sogou Inc
Performance |
| Timeline |
| RLX Technology |
| Sogou Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RLX Technology and Sogou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Sogou
The main advantage of trading using opposite RLX Technology and Sogou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Sogou 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 Sogou will offset losses from the drop in Sogou's long position.| RLX Technology vs. Universal | RLX Technology vs. Imperial Brands PLC | RLX Technology vs. British American Tobacco | RLX Technology vs. Philip Morris International |
| Sogou vs. Micron Technology | Sogou vs. CECO Environmental Corp | Sogou vs. MACOM Technology Solutions | Sogou vs. MYR 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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