Correlation Between HERSHEY and RLX Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between HERSHEY 72 percent and RLX Technology, you can compare the effects of market volatilities on HERSHEY 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 HERSHEY with a short position of RLX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HERSHEY and RLX Technology.
Diversification Opportunities for HERSHEY and RLX Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HERSHEY and RLX is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding HERSHEY 72 percent and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology and HERSHEY 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 HERSHEY 72 percent 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 HERSHEY i.e., HERSHEY and RLX Technology go up and down completely randomly.
Pair Corralation between HERSHEY and RLX Technology
Assuming the 90 days trading horizon HERSHEY is expected to generate 1.11 times less return on investment than RLX Technology. In addition to that, HERSHEY is 1.36 times more volatile than RLX Technology. It trades about 0.26 of its total potential returns per unit of risk. RLX Technology is currently generating about 0.39 per unit of volatility. If you would invest 161.00 in RLX Technology on September 2, 2024 and sell it today you would earn a total of 37.00 from holding RLX Technology or generate 22.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
HERSHEY 72 percent vs. RLX Technology
Performance |
| Timeline |
| HERSHEY 72 percent |
| RLX Technology |
HERSHEY and RLX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HERSHEY and RLX Technology
The main advantage of trading using opposite HERSHEY and RLX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HERSHEY 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.| HERSHEY vs. AEP TEX INC | HERSHEY vs. US BANK NATIONAL | HERSHEY vs. Bank of America | HERSHEY vs. GE Aerospace |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |