Correlation Between Rush Street and Hologic
Can any of the company-specific risk be diversified away by investing in both Rush Street and Hologic 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 Hologic 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 Hologic, you can compare the effects of market volatilities on Rush Street and Hologic 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 Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Hologic.
Diversification Opportunities for Rush Street and Hologic
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Hologic is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Rush Street i.e., Rush Street and Hologic go up and down completely randomly.
Pair Corralation between Rush Street and Hologic
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.59 times more return on investment than Hologic. However, Rush Street is 2.59 times more volatile than Hologic. It trades about 0.13 of its potential returns per unit of risk. Hologic is currently generating about 0.07 per unit of risk. If you would invest 885.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 495.00 from holding Rush Street Interactive or generate 55.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Hologic
Performance |
| Timeline |
| Rush Street Interactive |
| Hologic |
Rush Street and Hologic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Hologic
The main advantage of trading using opposite Rush Street and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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