Correlation Between Rush Street and Ilji Technology
Can any of the company-specific risk be diversified away by investing in both Rush Street and Ilji Technology 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 Ilji Technology 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 Ilji Technology Co, you can compare the effects of market volatilities on Rush Street and Ilji Technology 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 Ilji Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Ilji Technology.
Diversification Opportunities for Rush Street and Ilji Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Ilji is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Ilji Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ilji Technology 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 Ilji Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ilji Technology has no effect on the direction of Rush Street i.e., Rush Street and Ilji Technology go up and down completely randomly.
Pair Corralation between Rush Street and Ilji Technology
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.86 times more return on investment than Ilji Technology. However, Rush Street is 1.86 times more volatile than Ilji Technology Co. It trades about 0.41 of its potential returns per unit of risk. Ilji Technology Co is currently generating about -0.1 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Ilji Technology Co
Performance |
| Timeline |
| Rush Street Interactive |
| Ilji Technology |
Rush Street and Ilji Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Ilji Technology
The main advantage of trading using opposite Rush Street and Ilji Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Ilji Technology 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 Ilji Technology will offset losses from the drop in Ilji Technology's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Ilji Technology vs. Ssangyong Information Communication | Ilji Technology vs. Daishin Information Communications | Ilji Technology vs. FNSTech Co | Ilji Technology vs. GS Retail Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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