Correlation Between Raytech Holding and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both Raytech Holding and Inter Parfums 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 Raytech Holding and Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytech Holding Limited and Inter Parfums, you can compare the effects of market volatilities on Raytech Holding and Inter Parfums 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 Raytech Holding with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytech Holding and Inter Parfums.
Diversification Opportunities for Raytech Holding and Inter Parfums
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Raytech and Inter is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Raytech Holding Limited and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and Raytech Holding 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 Raytech Holding Limited are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Raytech Holding i.e., Raytech Holding and Inter Parfums go up and down completely randomly.
Pair Corralation between Raytech Holding and Inter Parfums
Considering the 90-day investment horizon Raytech Holding Limited is expected to under-perform the Inter Parfums. In addition to that, Raytech Holding is 7.15 times more volatile than Inter Parfums. It trades about -0.09 of its total potential returns per unit of risk. Inter Parfums is currently generating about -0.13 per unit of volatility. If you would invest 13,555 in Inter Parfums on June 1, 2025 and sell it today you would lose (1,902) from holding Inter Parfums or give up 14.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raytech Holding Limited vs. Inter Parfums
Performance |
| Timeline |
| Raytech Holding |
| Inter Parfums |
Raytech Holding and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytech Holding and Inter Parfums
The main advantage of trading using opposite Raytech Holding and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytech Holding position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Raytech Holding vs. Assurant | Raytech Holding vs. Sphere Entertainment Co | Raytech Holding vs. Communications Synergy Technologies | Raytech Holding vs. Getty Images Holdings |
| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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