Correlation Between RLX TECH and Evolent Health

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

By analyzing existing cross correlation between RLX TECH SPADR1 and Evolent Health, you can compare the effects of market volatilities on RLX TECH and Evolent Health 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 TECH with a short position of Evolent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX TECH and Evolent Health.

Diversification Opportunities for RLX TECH and Evolent Health

0.0

Correlation Coefficient

RLX TECH  Evolent Health

Pay attention - limited upside

The 3 months correlation between RLX and Evolent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RLX TECH SPADR1 and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health and RLX TECH 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 TECH SPADR1 are associated (or correlated) with Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of RLX TECH i.e., RLX TECH and Evolent Health go up and down completely randomly.

Pair Corralation between RLX TECH and Evolent Health

If you would invest  730.00  in Evolent Health on April 20, 2025 and sell it today you would earn a total of  250.00  from holding Evolent Health or generate 34.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

RLX TECH SPADR1  vs.  Evolent Health

RLX TECH SPADR1

Risk-Adjusted Performance

Solid

Over the last 90 days RLX TECH SPADR1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RLX TECH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Evolent Health

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Evolent Health are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Evolent Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RLX TECH and Evolent Health

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

The idea behind RLX TECH SPADR1 and Evolent Health 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.