Correlation Between Rush Street and Fubon Hang
Can any of the company-specific risk be diversified away by investing in both Rush Street and Fubon Hang 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 Rush Street and Fubon Hang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rush Street Interactive and Fubon Hang Seng, you can compare the effects of market volatilities on Rush Street and Fubon Hang 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 Rush Street with a short position of Fubon Hang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Fubon Hang.
Diversification Opportunities for Rush Street and Fubon Hang
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Fubon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Fubon Hang Seng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Hang Seng and Rush Street 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 Rush Street Interactive are associated (or correlated) with Fubon Hang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Hang Seng has no effect on the direction of Rush Street i.e., Rush Street and Fubon Hang go up and down completely randomly.
Pair Corralation between Rush Street and Fubon Hang
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.24 times more return on investment than Fubon Hang. However, Rush Street is 2.24 times more volatile than Fubon Hang Seng. It trades about 0.13 of its potential returns per unit of risk. Fubon Hang Seng is currently generating about -0.02 per unit of risk. If you would invest 302.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 1,078 from holding Rush Street Interactive or generate 356.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Rush Street Interactive vs. Fubon Hang Seng
Performance |
| Timeline |
| Rush Street Interactive |
| Fubon Hang Seng |
Rush Street and Fubon Hang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Fubon Hang
The main advantage of trading using opposite Rush Street and Fubon Hang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Fubon Hang 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 Fubon Hang will offset losses from the drop in Fubon Hang's long position.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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