Correlation Between RLX Technology and Maplebear

Can any of the company-specific risk be diversified away by investing in both RLX Technology and Maplebear 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 Maplebear into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RLX Technology and Maplebear, you can compare the effects of market volatilities on RLX Technology and Maplebear 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 Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Maplebear.

Diversification Opportunities for RLX Technology and Maplebear

0.6

Correlation Coefficient

RLX Technology  Maplebear

Poor diversification

The 3 months correlation between RLX and Maplebear is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear 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 Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of RLX Technology i.e., RLX Technology and Maplebear go up and down completely randomly.

Pair Corralation between RLX Technology and Maplebear

Considering the 90-day investment horizon RLX Technology is expected to generate 0.83 times more return on investment than Maplebear. However, RLX Technology is 1.21 times less risky than Maplebear. It trades about 0.23 of its potential returns per unit of risk. Maplebear is currently generating about 0.03 per unit of risk. If you would invest  186.00  in RLX Technology on May 3, 2025 and sell it today you would earn a total of  43.00  from holding RLX Technology or generate 23.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

RLX Technology  vs.  Maplebear

RLX Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RLX Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, RLX Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Maplebear

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Maplebear is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with RLX Technology and Maplebear

The main advantage of trading using opposite RLX Technology and Maplebear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology position performs unexpectedly, Maplebear 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 Maplebear will offset losses from the drop in Maplebear's long position.

The idea behind RLX Technology and Maplebear pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.