Correlation Between Rush Street and LS Electric
Can any of the company-specific risk be diversified away by investing in both Rush Street and LS Electric 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 LS Electric 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 LS Electric, you can compare the effects of market volatilities on Rush Street and LS Electric 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 LS Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and LS Electric.
Diversification Opportunities for Rush Street and LS Electric
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and 010120 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and LS Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LS Electric 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 LS Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LS Electric has no effect on the direction of Rush Street i.e., Rush Street and LS Electric go up and down completely randomly.
Pair Corralation between Rush Street and LS Electric
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.89 times more return on investment than LS Electric. However, Rush Street Interactive is 1.12 times less risky than LS Electric. It trades about 0.12 of its potential returns per unit of risk. LS Electric is currently generating about 0.07 per unit of risk. If you would invest 322.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 1,099 from holding Rush Street Interactive or generate 341.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.71% |
| Values | Daily Returns |
Rush Street Interactive vs. LS Electric
Performance |
| Timeline |
| Rush Street Interactive |
| LS Electric |
Rush Street and LS Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and LS Electric
The main advantage of trading using opposite Rush Street and LS Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, LS Electric 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 LS Electric will offset losses from the drop in LS Electric's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| LS Electric vs. Samsung Electronics Co | LS Electric vs. Samsung Electronics Co | LS Electric vs. KB Financial Group | LS Electric vs. Shinhan Financial Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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