Correlation Between RLX Technology and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both RLX Technology 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 RLX Technology and Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RLX Technology and Inter Parfums, you can compare the effects of market volatilities on RLX Technology 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 RLX Technology with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of RLX Technology and Inter Parfums.
Diversification Opportunities for RLX Technology and Inter Parfums
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RLX and Inter is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding RLX Technology and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums 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 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 RLX Technology i.e., RLX Technology and Inter Parfums go up and down completely randomly.
Pair Corralation between RLX Technology and Inter Parfums
Considering the 90-day investment horizon RLX Technology is expected to generate 1.32 times more return on investment than Inter Parfums. However, RLX Technology is 1.32 times more volatile than Inter Parfums. It trades about 0.06 of its potential returns per unit of risk. Inter Parfums is currently generating about -0.05 per unit of risk. If you would invest 166.00 in RLX Technology on August 31, 2025 and sell it today you would earn a total of 85.00 from holding RLX Technology or generate 51.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RLX Technology vs. Inter Parfums
Performance |
| Timeline |
| RLX Technology |
| Inter Parfums |
RLX Technology and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RLX Technology and Inter Parfums
The main advantage of trading using opposite RLX Technology and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLX Technology 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.| RLX Technology vs. DIRTT Environmental Solutions | RLX Technology vs. Champion Iron Limited | RLX Technology vs. 51Talk Online Education | RLX Technology vs. Renovare Environmental |
| Inter Parfums vs. 51Talk Online Education | Inter Parfums vs. Skillful Craftsman Education | Inter Parfums vs. Wah Fu Education | Inter Parfums vs. Strategic Education |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |