Correlation Between Rush Street and Klinique Med
Can any of the company-specific risk be diversified away by investing in both Rush Street and Klinique Med 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 Klinique Med 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 The Klinique Med, you can compare the effects of market volatilities on Rush Street and Klinique Med 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 Klinique Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Klinique Med.
Diversification Opportunities for Rush Street and Klinique Med
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Klinique is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and The Klinique Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klinique Med 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 Klinique Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klinique Med has no effect on the direction of Rush Street i.e., Rush Street and Klinique Med go up and down completely randomly.
Pair Corralation between Rush Street and Klinique Med
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.31 times more return on investment than Klinique Med. However, Rush Street is 1.31 times more volatile than The Klinique Med. It trades about 0.14 of its potential returns per unit of risk. The Klinique Med is currently generating about -0.07 per unit of risk. If you would invest 872.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 549.00 from holding Rush Street Interactive or generate 62.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Rush Street Interactive vs. The Klinique Med
Performance |
| Timeline |
| Rush Street Interactive |
| Klinique Med |
Rush Street and Klinique Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Klinique Med
The main advantage of trading using opposite Rush Street and Klinique Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Klinique Med 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 Klinique Med will offset losses from the drop in Klinique Med's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Klinique Med vs. Com7 PCL | Klinique Med vs. Gunkul Engineering Public | Klinique Med vs. i Tail Corp PCL | Klinique Med vs. Sappe 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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