Correlation Between Rush Street and United Microelectronics
Can any of the company-specific risk be diversified away by investing in both Rush Street and United Microelectronics 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 United Microelectronics 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 United Microelectronics, you can compare the effects of market volatilities on Rush Street and United Microelectronics 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 United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and United Microelectronics.
Diversification Opportunities for Rush Street and United Microelectronics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and United is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics 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 United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of Rush Street i.e., Rush Street and United Microelectronics go up and down completely randomly.
Pair Corralation between Rush Street and United Microelectronics
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.26 times more return on investment than United Microelectronics. However, Rush Street is 2.26 times more volatile than United Microelectronics. It trades about 0.09 of its potential returns per unit of risk. United Microelectronics is currently generating about 0.01 per unit of risk. If you would invest 353.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 1,027 from holding Rush Street Interactive or generate 290.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
Rush Street Interactive vs. United Microelectronics
Performance |
| Timeline |
| Rush Street Interactive |
| United Microelectronics |
Rush Street and United Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and United Microelectronics
The main advantage of trading using opposite Rush Street and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, United Microelectronics 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 United Microelectronics will offset losses from the drop in United Microelectronics' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| United Microelectronics vs. AU Optronics | United Microelectronics vs. Macronix International Co | United Microelectronics vs. Winbond Electronics Corp | United Microelectronics vs. Hon Hai Precision |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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