Correlation Between Rush Street and BHP Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and BHP 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 BHP 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 BHP Group Limited, you can compare the effects of market volatilities on Rush Street and BHP 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 BHP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and BHP Group.
Diversification Opportunities for Rush Street and BHP Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and BHP is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and BHP Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group 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 BHP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group Limited has no effect on the direction of Rush Street i.e., Rush Street and BHP Group go up and down completely randomly.
Pair Corralation between Rush Street and BHP Group
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.05 times more return on investment than BHP Group. However, Rush Street is 2.05 times more volatile than BHP Group Limited. It trades about 0.34 of its potential returns per unit of risk. BHP Group Limited is currently generating about -0.25 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 345.00 from holding Rush Street Interactive or generate 32.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. BHP Group Limited
Performance |
| Timeline |
| Rush Street Interactive |
| BHP Group Limited |
Rush Street and BHP Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and BHP Group
The main advantage of trading using opposite Rush Street and BHP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, BHP 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 BHP Group will offset losses from the drop in BHP Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| BHP Group vs. Harmony Gold Mining | BHP Group vs. Transportadora de Gas | BHP Group vs. United States Steel | BHP Group vs. Compania de Transporte |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |