Correlation Between Rush Street and Jinling Hotel
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By analyzing existing cross correlation between Rush Street Interactive and Jinling Hotel Corp, you can compare the effects of market volatilities on Rush Street and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Jinling Hotel.
Diversification Opportunities for Rush Street and Jinling Hotel
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Jinling is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Rush Street i.e., Rush Street and Jinling Hotel go up and down completely randomly.
Pair Corralation between Rush Street and Jinling Hotel
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.75 times more return on investment than Jinling Hotel. However, Rush Street is 1.75 times more volatile than Jinling Hotel Corp. It trades about 0.41 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.12 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 29, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Jinling Hotel Corp
Performance |
| Timeline |
| Rush Street Interactive |
| Jinling Hotel Corp |
Rush Street and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Jinling Hotel
The main advantage of trading using opposite Rush Street and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Jinling Hotel vs. Biwin Storage Technology | Jinling Hotel vs. PetroChina Co Ltd | Jinling Hotel vs. Industrial and Commercial | Jinling Hotel vs. China Construction Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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