Correlation Between PointsBet Holdings and Rush Street
Can any of the company-specific risk be diversified away by investing in both PointsBet Holdings and Rush Street 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 PointsBet Holdings and Rush Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PointsBet Holdings Limited and Rush Street Interactive, you can compare the effects of market volatilities on PointsBet Holdings and Rush Street 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 PointsBet Holdings with a short position of Rush Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of PointsBet Holdings and Rush Street.
Diversification Opportunities for PointsBet Holdings and Rush Street
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PointsBet and Rush is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PointsBet Holdings Limited and Rush Street Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Street Interactive and PointsBet Holdings 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 PointsBet Holdings Limited are associated (or correlated) with Rush Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Street Interactive has no effect on the direction of PointsBet Holdings i.e., PointsBet Holdings and Rush Street go up and down completely randomly.
Pair Corralation between PointsBet Holdings and Rush Street
Assuming the 90 days horizon PointsBet Holdings Limited is expected to generate 1.81 times more return on investment than Rush Street. However, PointsBet Holdings is 1.81 times more volatile than Rush Street Interactive. It trades about 0.33 of its potential returns per unit of risk. Rush Street Interactive is currently generating about 0.37 per unit of risk. If you would invest 43.00 in PointsBet Holdings Limited on August 27, 2024 and sell it today you would earn a total of 16.00 from holding PointsBet Holdings Limited or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.43% |
| Values | Daily Returns |
PointsBet Holdings Limited vs. Rush Street Interactive
Performance |
| Timeline |
| PointsBet Holdings |
| Rush Street Interactive |
PointsBet Holdings and Rush Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PointsBet Holdings and Rush Street
The main advantage of trading using opposite PointsBet Holdings and Rush Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PointsBet Holdings position performs unexpectedly, Rush Street 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 Rush Street will offset losses from the drop in Rush Street's long position.| PointsBet Holdings vs. Entain DRC PLC | PointsBet Holdings vs. 888 Holdings | PointsBet Holdings vs. Intema Solutions | PointsBet Holdings vs. Royal Wins |
| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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