Correlation Between Rush Street and Biogen
Can any of the company-specific risk be diversified away by investing in both Rush Street and Biogen 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 Biogen 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 Biogen Inc, you can compare the effects of market volatilities on Rush Street and Biogen 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 Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Biogen.
Diversification Opportunities for Rush Street and Biogen
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Biogen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of Rush Street i.e., Rush Street and Biogen go up and down completely randomly.
Pair Corralation between Rush Street and Biogen
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.83 times more return on investment than Biogen. However, Rush Street is 1.83 times more volatile than Biogen Inc. It trades about 0.14 of its potential returns per unit of risk. Biogen Inc is currently generating about -0.13 per unit of risk. If you would invest 895.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 526.00 from holding Rush Street Interactive or generate 58.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Rush Street Interactive vs. Biogen Inc
Performance |
| Timeline |
| Rush Street Interactive |
| Biogen Inc |
Rush Street and Biogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Biogen
The main advantage of trading using opposite Rush Street and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Biogen vs. CEOTRONICS | Biogen vs. Coor Service Management | Biogen vs. AGF Management Limited | Biogen vs. Jupiter Fund Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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