Correlation Between Rush Street and Hexagon Composites
Can any of the company-specific risk be diversified away by investing in both Rush Street and Hexagon Composites 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 Hexagon Composites 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 Hexagon Composites ASA, you can compare the effects of market volatilities on Rush Street and Hexagon Composites 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 Hexagon Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Hexagon Composites.
Diversification Opportunities for Rush Street and Hexagon Composites
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and Hexagon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Hexagon Composites ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Composites ASA 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 Hexagon Composites. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Composites ASA has no effect on the direction of Rush Street i.e., Rush Street and Hexagon Composites go up and down completely randomly.
Pair Corralation between Rush Street and Hexagon Composites
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.9 times more return on investment than Hexagon Composites. However, Rush Street Interactive is 1.12 times less risky than Hexagon Composites. It trades about 0.35 of its potential returns per unit of risk. Hexagon Composites ASA is currently generating about 0.0 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 366.00 from holding Rush Street Interactive or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Hexagon Composites ASA
Performance |
| Timeline |
| Rush Street Interactive |
| Hexagon Composites ASA |
Rush Street and Hexagon Composites Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Hexagon Composites
The main advantage of trading using opposite Rush Street and Hexagon Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Hexagon Composites 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 Hexagon Composites will offset losses from the drop in Hexagon Composites' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Hexagon Composites vs. Hexagon Purus As | Hexagon Composites vs. Nel ASA | Hexagon Composites vs. Powercell Sweden | Hexagon Composites vs. Tomra Systems ASA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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