Correlation Between Rush Street and Agile Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and Agile Group 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 Agile Group 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 Agile Group Holdings, you can compare the effects of market volatilities on Rush Street and Agile Group 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 Agile Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Agile Group.
Diversification Opportunities for Rush Street and Agile Group
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rush and Agile is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Agile Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Group Holdings 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 Agile Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Group Holdings has no effect on the direction of Rush Street i.e., Rush Street and Agile Group go up and down completely randomly.
Pair Corralation between Rush Street and Agile Group
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.58 times more return on investment than Agile Group. However, Rush Street is 2.58 times more volatile than Agile Group Holdings. It trades about 0.41 of its potential returns per unit of risk. Agile Group Holdings is currently generating about 0.03 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Agile Group Holdings
Performance |
| Timeline |
| Rush Street Interactive |
| Agile Group Holdings |
Rush Street and Agile Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Agile Group
The main advantage of trading using opposite Rush Street and Agile Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Agile Group 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 Agile Group will offset losses from the drop in Agile Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Agile Group vs. China Resources Land | Agile Group vs. Sun Hung Kai | Agile Group vs. China Overseas Land | Agile Group vs. EGRNF |
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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