Correlation Between Rush Street and KAGA EL
Can any of the company-specific risk be diversified away by investing in both Rush Street and KAGA EL 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 KAGA EL 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 KAGA EL LTD, you can compare the effects of market volatilities on Rush Street and KAGA EL 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 KAGA EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and KAGA EL.
Diversification Opportunities for Rush Street and KAGA EL
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and KAGA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and KAGA EL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAGA EL LTD 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 KAGA EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAGA EL LTD has no effect on the direction of Rush Street i.e., Rush Street and KAGA EL go up and down completely randomly.
Pair Corralation between Rush Street and KAGA EL
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.8 times more return on investment than KAGA EL. However, Rush Street is 2.8 times more volatile than KAGA EL LTD. It trades about 0.35 of its potential returns per unit of risk. KAGA EL LTD is currently generating about -0.03 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rush Street Interactive vs. KAGA EL LTD
Performance |
| Timeline |
| Rush Street Interactive |
| KAGA EL LTD |
Rush Street and KAGA EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and KAGA EL
The main advantage of trading using opposite Rush Street and KAGA EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, KAGA EL 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 KAGA EL will offset losses from the drop in KAGA EL's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| KAGA EL vs. SPORT LISBOA E | KAGA EL vs. DAIRY FARM INTL | KAGA EL vs. SCIENCE IN SPORT | KAGA EL vs. BII Railway Transportation |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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