Correlation Between Rush Street and Hecla Mining
Can any of the company-specific risk be diversified away by investing in both Rush Street and Hecla Mining 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 Hecla Mining 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 Hecla Mining, you can compare the effects of market volatilities on Rush Street and Hecla Mining 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 Hecla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Hecla Mining.
Diversification Opportunities for Rush Street and Hecla Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Hecla is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Hecla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hecla Mining 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 Hecla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hecla Mining has no effect on the direction of Rush Street i.e., Rush Street and Hecla Mining go up and down completely randomly.
Pair Corralation between Rush Street and Hecla Mining
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.82 times more return on investment than Hecla Mining. However, Rush Street is 4.82 times more volatile than Hecla Mining. It trades about 0.34 of its potential returns per unit of risk. Hecla Mining is currently generating about 0.16 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Hecla Mining
Performance |
| Timeline |
| Rush Street Interactive |
| Hecla Mining |
Rush Street and Hecla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Hecla Mining
The main advantage of trading using opposite Rush Street and Hecla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Hecla Mining 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 Hecla Mining will offset losses from the drop in Hecla Mining's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Hecla Mining vs. Triple Flag Precious | Hecla Mining vs. McEwen Mining | Hecla Mining vs. Endeavour Silver Corp | Hecla Mining vs. Hecla Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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