Correlation Between FANDIFI TECHNOLOGY and RLX TECH
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and RLX TECH 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 FANDIFI TECHNOLOGY and RLX TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and RLX TECH SPADR1, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and RLX TECH 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 FANDIFI TECHNOLOGY with a short position of RLX TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and RLX TECH.
Diversification Opportunities for FANDIFI TECHNOLOGY and RLX TECH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and RLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and RLX TECH SPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX TECH SPADR1 and FANDIFI 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 FANDIFI TECHNOLOGY P are associated (or correlated) with RLX TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX TECH SPADR1 has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and RLX TECH go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and RLX TECH
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to under-perform the RLX TECH. In addition to that, FANDIFI TECHNOLOGY is 3.66 times more volatile than RLX TECH SPADR1. It trades about -0.01 of its total potential returns per unit of risk. RLX TECH SPADR1 is currently generating about 0.04 per unit of volatility. If you would invest 163.00 in RLX TECH SPADR1 on September 3, 2024 and sell it today you would earn a total of 22.00 from holding RLX TECH SPADR1 or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.41% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. RLX TECH SPADR1
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| RLX TECH SPADR1 |
FANDIFI TECHNOLOGY and RLX TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and RLX TECH
The main advantage of trading using opposite FANDIFI TECHNOLOGY and RLX TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, RLX TECH 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 RLX TECH will offset losses from the drop in RLX TECH's long position.| FANDIFI TECHNOLOGY vs. GALENA MINING LTD | FANDIFI TECHNOLOGY vs. United Natural Foods | FANDIFI TECHNOLOGY vs. TYSON FOODS A | FANDIFI TECHNOLOGY vs. GRIFFIN MINING LTD |
| RLX TECH vs. Alaska Air Group | RLX TECH vs. MOVIE GAMES SA | RLX TECH vs. Apollo Investment Corp | RLX TECH vs. PennyMac Mortgage Investment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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