Correlation Between Rush Street and Aura Energy
Can any of the company-specific risk be diversified away by investing in both Rush Street and Aura Energy 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 Aura Energy 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 Aura Energy Limited, you can compare the effects of market volatilities on Rush Street and Aura Energy 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 Aura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Aura Energy.
Diversification Opportunities for Rush Street and Aura Energy
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and Aura is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Aura Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Energy Limited 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 Aura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Energy Limited has no effect on the direction of Rush Street i.e., Rush Street and Aura Energy go up and down completely randomly.
Pair Corralation between Rush Street and Aura Energy
Considering the 90-day investment horizon Rush Street is expected to generate 1.44 times less return on investment than Aura Energy. But when comparing it to its historical volatility, Rush Street Interactive is 3.21 times less risky than Aura Energy. It trades about 0.09 of its potential returns per unit of risk. Aura Energy Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Aura Energy Limited on August 29, 2024 and sell it today you would lose (9.00) from holding Aura Energy Limited or give up 45.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Rush Street Interactive vs. Aura Energy Limited
Performance |
| Timeline |
| Rush Street Interactive |
| Aura Energy Limited |
Rush Street and Aura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Aura Energy
The main advantage of trading using opposite Rush Street and Aura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Aura Energy 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 Aura Energy will offset losses from the drop in Aura Energy's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Aura Energy vs. Elevate Uranium | Aura Energy vs. Baselode Energy Corp | Aura Energy vs. Peninsula Energy | Aura Energy vs. Forsys Metals 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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