Correlation Between Rush Street and Bayfirst Financial
Can any of the company-specific risk be diversified away by investing in both Rush Street and Bayfirst Financial 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 Bayfirst Financial 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 Bayfirst Financial Corp, you can compare the effects of market volatilities on Rush Street and Bayfirst Financial 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 Bayfirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Bayfirst Financial.
Diversification Opportunities for Rush Street and Bayfirst Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Bayfirst is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Bayfirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayfirst Financial Corp 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 Bayfirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayfirst Financial Corp has no effect on the direction of Rush Street i.e., Rush Street and Bayfirst Financial go up and down completely randomly.
Pair Corralation between Rush Street and Bayfirst Financial
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.86 times more return on investment than Bayfirst Financial. However, Rush Street is 1.86 times more volatile than Bayfirst Financial Corp. It trades about 0.37 of its potential returns per unit of risk. Bayfirst Financial Corp is currently generating about 0.04 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 340.00 from holding Rush Street Interactive or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Bayfirst Financial Corp
Performance |
| Timeline |
| Rush Street Interactive |
| Bayfirst Financial Corp |
Rush Street and Bayfirst Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Bayfirst Financial
The main advantage of trading using opposite Rush Street and Bayfirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Bayfirst Financial 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 Bayfirst Financial will offset losses from the drop in Bayfirst Financial's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Bayfirst Financial vs. Home Federal Bancorp | Bayfirst Financial vs. LINKBANCORP | Bayfirst Financial vs. Affinity Bancshares | Bayfirst Financial vs. BayCom 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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