Correlation Between Rush Street and Bayer AG
Can any of the company-specific risk be diversified away by investing in both Rush Street and Bayer AG 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 Bayer AG 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 Bayer AG PK, you can compare the effects of market volatilities on Rush Street and Bayer AG 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 Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Bayer AG.
Diversification Opportunities for Rush Street and Bayer AG
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and Bayer is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Bayer AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG PK 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 Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG PK has no effect on the direction of Rush Street i.e., Rush Street and Bayer AG go up and down completely randomly.
Pair Corralation between Rush Street and Bayer AG
If you would invest 320.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,101 from holding Rush Street Interactive or generate 344.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.25% |
| Values | Daily Returns |
Rush Street Interactive vs. Bayer AG PK
Performance |
| Timeline |
| Rush Street Interactive |
| Bayer AG PK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rush Street and Bayer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Bayer AG
The main advantage of trading using opposite Rush Street and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Bayer AG vs. Novartis AG ADR | Bayer AG vs. Sanofi ADR | Bayer AG vs. AstraZeneca PLC ADR | Bayer AG vs. GlaxoSmithKline PLC ADR |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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