Correlation Between Rush Street and DBS Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and DBS 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 DBS 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 DBS Group Holdings, you can compare the effects of market volatilities on Rush Street and DBS 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 DBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and DBS Group.
Diversification Opportunities for Rush Street and DBS Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and DBS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and DBS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBS Group Holdings 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 DBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBS Group Holdings has no effect on the direction of Rush Street i.e., Rush Street and DBS Group go up and down completely randomly.
Pair Corralation between Rush Street and DBS Group
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.33 times more return on investment than DBS Group. However, Rush Street is 1.33 times more volatile than DBS Group Holdings. It trades about 0.09 of its potential returns per unit of risk. DBS Group Holdings is currently generating about 0.05 per unit of risk. If you would invest 353.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 1,068 from holding Rush Street Interactive or generate 302.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. DBS Group Holdings
Performance |
| Timeline |
| Rush Street Interactive |
| DBS Group Holdings |
Rush Street and DBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and DBS Group
The main advantage of trading using opposite Rush Street and DBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, DBS 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 DBS Group will offset losses from the drop in DBS Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| DBS Group vs. United Overseas Bank | DBS Group vs. KBC Groep NV | DBS Group vs. Overseas Chinese Banking | DBS Group vs. China Minsh |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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