Correlation Between Ross Stores and RTL Group
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By analyzing existing cross correlation between Ross Stores and RTL Group SA, you can compare the effects of market volatilities on Ross Stores and RTL Group 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 Ross Stores with a short position of RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and RTL Group.
Diversification Opportunities for Ross Stores and RTL Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ross and RTL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA and Ross Stores 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 Ross Stores are associated (or correlated) with RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of Ross Stores i.e., Ross Stores and RTL Group go up and down completely randomly.
Pair Corralation between Ross Stores and RTL Group
Assuming the 90 days trading horizon Ross Stores is expected to generate 1.55 times less return on investment than RTL Group. In addition to that, Ross Stores is 1.69 times more volatile than RTL Group SA. It trades about 0.17 of its total potential returns per unit of risk. RTL Group SA is currently generating about 0.45 per unit of volatility. If you would invest 2,385 in RTL Group SA on September 15, 2024 and sell it today you would earn a total of 350.00 from holding RTL Group SA or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ross Stores vs. RTL Group SA
Performance |
| Timeline |
| Ross Stores |
| RTL Group SA |
Ross Stores and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and RTL Group
The main advantage of trading using opposite Ross Stores and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| Ross Stores vs. SOGECLAIR SA INH | Ross Stores vs. Westinghouse Air Brake | Ross Stores vs. BW OFFSHORE LTD | Ross Stores vs. WT OFFSHORE |
| RTL Group vs. Gold Road Resources | RTL Group vs. KAUFMAN ET BROAD | RTL Group vs. Ross Stores | RTL Group vs. JIAHUA STORES |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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