Correlation Between Rush Street and Box

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Rush Street and Box 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 Box 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 Box Inc, you can compare the effects of market volatilities on Rush Street and Box 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 Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Box.

Diversification Opportunities for Rush Street and Box

0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Rush and Box is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Box Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Inc 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 Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Box Inc has no effect on the direction of Rush Street i.e., Rush Street and Box go up and down completely randomly.

Pair Corralation between Rush Street and Box

Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.36 times more return on investment than Box. However, Rush Street is 2.36 times more volatile than Box Inc. It trades about 0.26 of its potential returns per unit of risk. Box Inc is currently generating about 0.12 per unit of risk. If you would invest  902.00  in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of  519.00  from holding Rush Street Interactive or generate 57.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Rush Street Interactive  vs.  Box Inc

 Performance 
       Timeline  
Rush Street Interactive 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Rush Street Interactive are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Rush Street demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Box Inc 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Box Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Box may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Rush Street and Box Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rush Street and Box

The main advantage of trading using opposite Rush Street and Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Box 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 Box will offset losses from the drop in Box's long position.
The idea behind Rush Street Interactive and Box Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators