Correlation Between Rush Street and Accor S
Can any of the company-specific risk be diversified away by investing in both Rush Street and Accor S 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 Accor S 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 Accor S A, you can compare the effects of market volatilities on Rush Street and Accor S 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 Accor S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Accor S.
Diversification Opportunities for Rush Street and Accor S
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Accor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Accor S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor S A 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 Accor S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor S A has no effect on the direction of Rush Street i.e., Rush Street and Accor S go up and down completely randomly.
Pair Corralation between Rush Street and Accor S
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.88 times more return on investment than Accor S. However, Rush Street is 2.88 times more volatile than Accor S A. It trades about 0.36 of its potential returns per unit of risk. Accor S A is currently generating about 0.15 per unit of risk. If you would invest 1,082 in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Rush Street Interactive vs. Accor S A
Performance |
| Timeline |
| Rush Street Interactive |
| Accor S A |
Rush Street and Accor S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Accor S
The main advantage of trading using opposite Rush Street and Accor S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Accor S 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 Accor S will offset losses from the drop in Accor S's long position.| Rush Street vs. The Wendys Co | Rush Street vs. Shake Shack | Rush Street vs. Papa Johns International | Rush Street vs. Darden Restaurants |
| Accor S vs. Les Hotels Bav | Accor S vs. Groupe Partouche SA | Accor S vs. Centrale dAchat Franaise | Accor S vs. Manitou BF SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |