Correlation Between Rush Street and Lazard Global
Can any of the company-specific risk be diversified away by investing in both Rush Street and Lazard Global 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 Lazard Global 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 Lazard Global Total, you can compare the effects of market volatilities on Rush Street and Lazard Global 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 Lazard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Lazard Global.
Diversification Opportunities for Rush Street and Lazard Global
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Lazard is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Lazard Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Global Total 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 Lazard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Global Total has no effect on the direction of Rush Street i.e., Rush Street and Lazard Global go up and down completely randomly.
Pair Corralation between Rush Street and Lazard Global
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.54 times more return on investment than Lazard Global. However, Rush Street is 3.54 times more volatile than Lazard Global Total. It trades about 0.15 of its potential returns per unit of risk. Lazard Global Total is currently generating about 0.1 per unit of risk. If you would invest 441.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 891.00 from holding Rush Street Interactive or generate 202.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Lazard Global Total
Performance |
| Timeline |
| Rush Street Interactive |
| Lazard Global Total |
Rush Street and Lazard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Lazard Global
The main advantage of trading using opposite Rush Street and Lazard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Lazard Global 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 Lazard Global will offset losses from the drop in Lazard Global's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Lazard Global vs. Cohen Steers Closed | Lazard Global vs. Abrdn Emerging Markets | Lazard Global vs. Allianzgi Equity Convertible | Lazard Global vs. Eaton Vance Senior |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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