Correlation Between ENTERGY and RLX Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between ENTERGY P NEW and RLX Technology, you can compare the effects of market volatilities on ENTERGY and RLX Technology 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 ENTERGY with a short position of RLX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTERGY and RLX Technology.
Diversification Opportunities for ENTERGY and RLX Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENTERGY and RLX is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ENTERGY P NEW and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology and ENTERGY 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 ENTERGY P NEW are associated (or correlated) with RLX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX Technology has no effect on the direction of ENTERGY i.e., ENTERGY and RLX Technology go up and down completely randomly.
Pair Corralation between ENTERGY and RLX Technology
Assuming the 90 days trading horizon ENTERGY is expected to generate 30.09 times less return on investment than RLX Technology. But when comparing it to its historical volatility, ENTERGY P NEW is 14.72 times less risky than RLX Technology. It trades about 0.04 of its potential returns per unit of risk. RLX Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 168.00 in RLX Technology on September 3, 2024 and sell it today you would earn a total of 30.00 from holding RLX Technology or generate 17.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
ENTERGY P NEW vs. RLX Technology
Performance |
| Timeline |
| ENTERGY P NEW |
| RLX Technology |
ENTERGY and RLX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTERGY and RLX Technology
The main advantage of trading using opposite ENTERGY and RLX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTERGY position performs unexpectedly, RLX Technology 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 Technology will offset losses from the drop in RLX Technology's long position.| ENTERGY vs. RLX Technology | ENTERGY vs. Diageo PLC ADR | ENTERGY vs. Philip Morris International | ENTERGY vs. Ambev SA ADR |
| RLX Technology vs. Green Globe International | RLX Technology vs. Kaival Brands Innovations | RLX Technology vs. Greenlane Holdings | RLX Technology vs. 22nd Century 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |