Correlation Between Rush Street and Hsing Ta
Can any of the company-specific risk be diversified away by investing in both Rush Street and Hsing Ta 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 Hsing Ta 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 Hsing Ta Cement, you can compare the effects of market volatilities on Rush Street and Hsing Ta 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 Hsing Ta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Hsing Ta.
Diversification Opportunities for Rush Street and Hsing Ta
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Hsing is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Hsing Ta Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsing Ta Cement 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 Hsing Ta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsing Ta Cement has no effect on the direction of Rush Street i.e., Rush Street and Hsing Ta go up and down completely randomly.
Pair Corralation between Rush Street and Hsing Ta
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 7.89 times more return on investment than Hsing Ta. However, Rush Street is 7.89 times more volatile than Hsing Ta Cement. It trades about 0.35 of its potential returns per unit of risk. Hsing Ta Cement is currently generating about -0.05 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 366.00 from holding Rush Street Interactive or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Hsing Ta Cement
Performance |
| Timeline |
| Rush Street Interactive |
| Hsing Ta Cement |
Rush Street and Hsing Ta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Hsing Ta
The main advantage of trading using opposite Rush Street and Hsing Ta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Hsing Ta 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 Hsing Ta will offset losses from the drop in Hsing Ta's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Hsing Ta vs. Basso Industry Corp | Hsing Ta vs. Chung Hsin Electric Machinery | Hsing Ta vs. TYC Brother Industrial | Hsing Ta vs. TECO Electric Machinery |
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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