Correlation Between Clean Energy and RLX TECH
Can any of the company-specific risk be diversified away by investing in both Clean Energy 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 Clean Energy and RLX TECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and RLX TECH SPADR1, you can compare the effects of market volatilities on Clean Energy 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 Clean Energy with a short position of RLX TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and RLX TECH.
Diversification Opportunities for Clean Energy and RLX TECH
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clean and RLX is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels 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 Clean Energy 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 Clean Energy Fuels 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 Clean Energy i.e., Clean Energy and RLX TECH go up and down completely randomly.
Pair Corralation between Clean Energy and RLX TECH
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 1.89 times more return on investment than RLX TECH. However, Clean Energy is 1.89 times more volatile than RLX TECH SPADR1. It trades about 0.26 of its potential returns per unit of risk. RLX TECH SPADR1 is currently generating about -0.09 per unit of risk. If you would invest 254.00 in Clean Energy Fuels on November 1, 2024 and sell it today you would earn a total of 47.00 from holding Clean Energy Fuels or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Clean Energy Fuels vs. RLX TECH SPADR1
Performance |
| Timeline |
| Clean Energy Fuels |
| RLX TECH SPADR1 |
Clean Energy and RLX TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and RLX TECH
The main advantage of trading using opposite Clean Energy and RLX TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy 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.| Clean Energy vs. United Rentals | Clean Energy vs. UNITED RENTALS | Clean Energy vs. GREENX METALS LTD | Clean Energy vs. Platinum Investment Management |
| RLX TECH vs. TRADEDOUBLER AB SK | RLX TECH vs. Clean Energy Fuels | RLX TECH vs. ULTRA CLEAN HLDGS | RLX TECH vs. H2O Retailing |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |