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RH (RH) closed 2.66% lower on September 24, 2025, with a trading volume of $200 million, ranking 473rd among U.S. equities. The stock’s performance reflects investor caution amid mixed market conditions, as broader indices showed divergent trends in the sector. Analysts noted that liquidity constraints and sector rotation appeared to influence short-term positioning decisions.
Recent developments highlighted RH’s exposure to evolving retail dynamics, with investors recalibrating expectations for its Q3 earnings outlook. While no new earnings guidance was released, the stock’s valuation multiples remain under scrutiny as market participants assess margins against a backdrop of shifting consumer spending patterns. Institutional outflows observed in the past week further amplified near-term volatility.
Strategic positioning for the back-test requires clarification on several parameters. The universe of U.S.-listed common stocks (NYSE + NASDAQ) will be considered. The top-500 basket will be equal-weighted for a one-day holding period. Rebalancing will occur by selecting the top 500 names based on daily trading volume at market close, with entry at the next day’s open and exit at the close. Transaction costs and slippage will be excluded for simplicity. Performance metrics will focus on cumulative returns and risk statistics without benchmark comparisons.

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