Correlation Between Chefs Warehouse and RLX Technology

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

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

Diversification Opportunities for Chefs Warehouse and RLX Technology

0.28

Correlation Coefficient

Chefs Warehouse  RLX Technology

Modest diversification

The 3 months correlation between Chefs and RLX is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Chefs Warehouse and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology and Chefs Warehouse 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 The Chefs Warehouse are associated (or correlated) with RLX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX Technology has no effect on the direction of Chefs Warehouse i.e., Chefs Warehouse and RLX Technology go up and down completely randomly.

Pair Corralation between Chefs Warehouse and RLX Technology

Given the investment horizon of 90 days The Chefs Warehouse is expected to under-perform the RLX Technology. In addition to that, Chefs Warehouse is 1.03 times more volatile than RLX Technology. It trades about -0.03 of its total potential returns per unit of risk. RLX Technology is currently generating about 0.03 per unit of volatility. If you would invest  239.00  in RLX Technology on August 26, 2025 and sell it today you would earn a total of  6.00  from holding RLX Technology or generate 2.51% return on investment over 90 days.

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

The Chefs Warehouse  vs.  RLX Technology

Chefs Warehouse

Risk-Adjusted Performance

Weakest

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

RLX Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RLX Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, RLX Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Chefs Warehouse and RLX Technology

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

The idea behind The Chefs Warehouse and RLX Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.