Correlation Between Rush Street and Jack Chia
Can any of the company-specific risk be diversified away by investing in both Rush Street and Jack Chia 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 Jack Chia 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 Jack Chia Industries, you can compare the effects of market volatilities on Rush Street and Jack Chia 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 Jack Chia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Jack Chia.
Diversification Opportunities for Rush Street and Jack Chia
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rush and Jack is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Jack Chia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Chia Industries 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 Jack Chia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Chia Industries has no effect on the direction of Rush Street i.e., Rush Street and Jack Chia go up and down completely randomly.
Pair Corralation between Rush Street and Jack Chia
Considering the 90-day investment horizon Rush Street is expected to generate 18.98 times less return on investment than Jack Chia. But when comparing it to its historical volatility, Rush Street Interactive is 44.18 times less risky than Jack Chia. It trades about 0.26 of its potential returns per unit of risk. Jack Chia Industries is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,025 in Jack Chia Industries on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Jack Chia Industries or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Rush Street Interactive vs. Jack Chia Industries
Performance |
| Timeline |
| Rush Street Interactive |
| Jack Chia Industries |
Rush Street and Jack Chia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Jack Chia
The main advantage of trading using opposite Rush Street and Jack Chia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Jack Chia 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 Jack Chia will offset losses from the drop in Jack Chia's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Jack Chia vs. Kang Yong Electric | Jack Chia vs. Krungdhep Sophon Public | Jack Chia vs. KGI Securities Public | Jack Chia vs. Inoue Rubber Public |
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 CEOs Directory module to screen CEOs from public companies around the world.
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