Correlation Between Rush Street and Golden Sun
Can any of the company-specific risk be diversified away by investing in both Rush Street and Golden Sun 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 Golden Sun 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 Golden Sun Education, you can compare the effects of market volatilities on Rush Street and Golden Sun 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 Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Golden Sun.
Diversification Opportunities for Rush Street and Golden Sun
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Golden is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun Education 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 Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of Rush Street i.e., Rush Street and Golden Sun go up and down completely randomly.
Pair Corralation between Rush Street and Golden Sun
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.5 times more return on investment than Golden Sun. However, Rush Street Interactive is 2.01 times less risky than Golden Sun. It trades about 0.37 of its potential returns per unit of risk. Golden Sun Education is currently generating about -0.06 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 340.00 from holding Rush Street Interactive or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Golden Sun Education
Performance |
| Timeline |
| Rush Street Interactive |
| Golden Sun Education |
Rush Street and Golden Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Golden Sun
The main advantage of trading using opposite Rush Street and Golden Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Golden Sun 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 Golden Sun will offset losses from the drop in Golden Sun's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal Education |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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