Correlation Between Rush Street and KBC Groep
Can any of the company-specific risk be diversified away by investing in both Rush Street and KBC Groep 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 KBC Groep 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 KBC Groep NV, you can compare the effects of market volatilities on Rush Street and KBC Groep 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 KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and KBC Groep.
Diversification Opportunities for Rush Street and KBC Groep
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and KBC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV 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 KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of Rush Street i.e., Rush Street and KBC Groep go up and down completely randomly.
Pair Corralation between Rush Street and KBC Groep
Considering the 90-day investment horizon Rush Street is expected to generate 1.24 times less return on investment than KBC Groep. In addition to that, Rush Street is 1.38 times more volatile than KBC Groep NV. It trades about 0.21 of its total potential returns per unit of risk. KBC Groep NV is currently generating about 0.35 per unit of volatility. If you would invest 3,750 in KBC Groep NV on November 18, 2024 and sell it today you would earn a total of 549.00 from holding KBC Groep NV or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. KBC Groep NV
Performance |
| Timeline |
| Rush Street Interactive |
| KBC Groep NV |
Rush Street and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and KBC Groep
The main advantage of trading using opposite Rush Street and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| KBC Groep vs. DBS Group Holdings | KBC Groep vs. United Overseas Bank | KBC Groep vs. Overseas Chinese Banking | KBC Groep vs. China Minsh |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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