Correlation Between Rush Street and Bitcoin Well
Can any of the company-specific risk be diversified away by investing in both Rush Street and Bitcoin Well 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 Bitcoin Well 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 Bitcoin Well, you can compare the effects of market volatilities on Rush Street and Bitcoin Well 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 Bitcoin Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Bitcoin Well.
Diversification Opportunities for Rush Street and Bitcoin Well
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Bitcoin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Bitcoin Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Well 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 Bitcoin Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Well has no effect on the direction of Rush Street i.e., Rush Street and Bitcoin Well go up and down completely randomly.
Pair Corralation between Rush Street and Bitcoin Well
Considering the 90-day investment horizon Rush Street is expected to generate 4.35 times less return on investment than Bitcoin Well. But when comparing it to its historical volatility, Rush Street Interactive is 5.66 times less risky than Bitcoin Well. It trades about 0.12 of its potential returns per unit of risk. Bitcoin Well is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.13 in Bitcoin Well on August 29, 2024 and sell it today you would earn a total of 8.87 from holding Bitcoin Well or generate 214.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Rush Street Interactive vs. Bitcoin Well
Performance |
| Timeline |
| Rush Street Interactive |
| Bitcoin Well |
Rush Street and Bitcoin Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Bitcoin Well
The main advantage of trading using opposite Rush Street and Bitcoin Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Bitcoin Well 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 Bitcoin Well will offset losses from the drop in Bitcoin Well's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Bitcoin Well vs. SPENN Technology AS | Bitcoin Well vs. Arcane Crypto AB | Bitcoin Well vs. OFX Group Ltd | Bitcoin Well vs. Blockmate Ventures |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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