RL vs RMT: Correlation
How closely do Ralph Lauren Corporation (RL) and Royce Micro-Cap Trust, Inc. (RMT) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RL and RMT?
Across a 3-year window, the weekly returns of RL and RMT correlate at 0.54, moderate. The relationship has been stable: the 1-year correlation (0.49) sits close to the 3-year figure. Stretching to 5 years gives 0.59, with an annualized covariance of 374.1 %².
Among the 42 assets we track against RL, RMT ranks #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months RMT outperformed by 27.7 percentage points (+20.7% for RL against +48.4% for RMT). Note the risk asymmetry: RL runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
RL vs RMT: side by side
| RL (Ralph Lauren Corporation) | RMT (Royce Micro-Cap Trust, Inc.) | |
|---|---|---|
| 1-year return | +20.7% | +48.4% |
| 5-year return | +232.5% | +80.1% |
| Volatility (ann.) | 33.6% | 20.5% |
| Beta vs S&P 500 | 1.07 | 1.09 |
| Max drawdown (3Y) | -36.2% | -26.4% |
| Market cap | $21.0B | $0.8B |
| P/E (trailing) | 22.8 | 8.5 |
| Dividend yield | 1.03% | 5.57% |
| Sector / category | Consumer Discretionary | US Listed |
Year-by-year returns
| Year | RL | RMT |
|---|---|---|
| 2022 | -8.4% | -16.8% |
| 2023 | +39.8% | +15.8% |
| 2024 | +62.9% | +14.0% |
| 2025 | +55.0% | +16.1% |
| 2026 | +0.0% | +39.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RL and RMT good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between RL and RMT?
As of 2026-08-27, the correlation of weekly returns between RL and RMT is 0.54 over 3 years, 0.49 over 1 year and 0.59 over 5 years.
Is RMT a good diversifier for RL?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/rl-vs-rmt.json
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Related comparisons
Hubs: RL correlations · RMT correlations
