Correlation Between Rush Street and Bonny Worldwide
Can any of the company-specific risk be diversified away by investing in both Rush Street and Bonny Worldwide 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 Bonny Worldwide 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 Bonny Worldwide, you can compare the effects of market volatilities on Rush Street and Bonny Worldwide 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 Bonny Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Bonny Worldwide.
Diversification Opportunities for Rush Street and Bonny Worldwide
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and Bonny is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Bonny Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonny Worldwide 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 Bonny Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonny Worldwide has no effect on the direction of Rush Street i.e., Rush Street and Bonny Worldwide go up and down completely randomly.
Pair Corralation between Rush Street and Bonny Worldwide
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.15 times more return on investment than Bonny Worldwide. However, Rush Street is 1.15 times more volatile than Bonny Worldwide. It trades about 0.37 of its potential returns per unit of risk. Bonny Worldwide is currently generating about 0.1 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 381.00 from holding Rush Street Interactive or generate 36.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Bonny Worldwide
Performance |
| Timeline |
| Rush Street Interactive |
| Bonny Worldwide |
Rush Street and Bonny Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Bonny Worldwide
The main advantage of trading using opposite Rush Street and Bonny Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Bonny Worldwide 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 Bonny Worldwide will offset losses from the drop in Bonny Worldwide's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Bonny Worldwide vs. Feng Tay Enterprises | Bonny Worldwide vs. Ruentex Materials Co | Bonny Worldwide vs. Symtek Automation Asia | Bonny Worldwide vs. CTCI Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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