Correlation Between Rush Street and AIB Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and AIB 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 AIB 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 AIB Group PLC, you can compare the effects of market volatilities on Rush Street and AIB 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 AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and AIB Group.
Diversification Opportunities for Rush Street and AIB Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and AIB is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and AIB Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group PLC 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 AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group PLC has no effect on the direction of Rush Street i.e., Rush Street and AIB Group go up and down completely randomly.
Pair Corralation between Rush Street and AIB Group
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.52 times more return on investment than AIB Group. However, Rush Street is 1.52 times more volatile than AIB Group PLC. It trades about 0.09 of its potential returns per unit of risk. AIB Group PLC is currently generating about 0.09 per unit of risk. If you would invest 364.00 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 968.00 from holding Rush Street Interactive or generate 265.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
Rush Street Interactive vs. AIB Group PLC
Performance |
| Timeline |
| Rush Street Interactive |
| AIB Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rush Street and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and AIB Group
The main advantage of trading using opposite Rush Street and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, AIB 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 AIB Group will offset losses from the drop in AIB Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| AIB Group vs. Andover Bancorp | AIB Group vs. Banco del Bajo | AIB Group vs. Aozora Bank Ltd | AIB Group vs. Absa Group Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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