Correlation Between Rush Street and Golden Haven
Can any of the company-specific risk be diversified away by investing in both Rush Street and Golden Haven 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 Haven 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 Haven Memorial, you can compare the effects of market volatilities on Rush Street and Golden Haven 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 Haven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Golden Haven.
Diversification Opportunities for Rush Street and Golden Haven
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and Golden is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Golden Haven Memorial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Haven Memorial 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 Haven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Haven Memorial has no effect on the direction of Rush Street i.e., Rush Street and Golden Haven go up and down completely randomly.
Pair Corralation between Rush Street and Golden Haven
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.0 times more return on investment than Golden Haven. However, Rush Street is 1.0 times more volatile than Golden Haven Memorial. It trades about 0.26 of its potential returns per unit of risk. Golden Haven Memorial is currently generating about 0.18 per unit of risk. If you would invest 902.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 519.00 from holding Rush Street Interactive or generate 57.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Rush Street Interactive vs. Golden Haven Memorial
Performance |
| Timeline |
| Rush Street Interactive |
| Golden Haven Memorial |
Rush Street and Golden Haven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Golden Haven
The main advantage of trading using opposite Rush Street and Golden Haven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Golden Haven 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 Haven will offset losses from the drop in Golden Haven's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Golden Haven vs. Alliance Select Foods | Golden Haven vs. Century Pacific Food | Golden Haven vs. Robinsons Retail Holdings | Golden Haven vs. Suntrust Home Developers |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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