Correlation Between Rush Street and Inbar Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and Inbar Group 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 Inbar Group 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 Inbar Group Finance, you can compare the effects of market volatilities on Rush Street and Inbar Group 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 Inbar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Inbar Group.
Diversification Opportunities for Rush Street and Inbar Group
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Inbar is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Inbar Group Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inbar Group Finance 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 Inbar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inbar Group Finance has no effect on the direction of Rush Street i.e., Rush Street and Inbar Group go up and down completely randomly.
Pair Corralation between Rush Street and Inbar Group
Considering the 90-day investment horizon Rush Street is expected to generate 6.35 times less return on investment than Inbar Group. But when comparing it to its historical volatility, Rush Street Interactive is 15.37 times less risky than Inbar Group. It trades about 0.12 of its potential returns per unit of risk. Inbar Group Finance is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,970 in Inbar Group Finance on August 29, 2024 and sell it today you would earn a total of 28,170 from holding Inbar Group Finance or generate 566.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.12% |
| Values | Daily Returns |
Rush Street Interactive vs. Inbar Group Finance
Performance |
| Timeline |
| Rush Street Interactive |
| Inbar Group Finance |
Rush Street and Inbar Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Inbar Group
The main advantage of trading using opposite Rush Street and Inbar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Inbar Group 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 Inbar Group will offset losses from the drop in Inbar Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Inbar Group vs. Atreyu Capital Markets | Inbar Group vs. Poalim Ibi | Inbar Group vs. Value Capital One | Inbar Group vs. Elco |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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