Correlation Between Rush Street and Lime Technologies
Can any of the company-specific risk be diversified away by investing in both Rush Street and Lime Technologies 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 Lime Technologies 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 Lime Technologies AB, you can compare the effects of market volatilities on Rush Street and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Lime Technologies.
Diversification Opportunities for Rush Street and Lime Technologies
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and Lime is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Rush Street i.e., Rush Street and Lime Technologies go up and down completely randomly.
Pair Corralation between Rush Street and Lime Technologies
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.36 times more return on investment than Lime Technologies. However, Rush Street is 1.36 times more volatile than Lime Technologies AB. It trades about 0.16 of its potential returns per unit of risk. Lime Technologies AB is currently generating about 0.04 per unit of risk. If you would invest 431.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 1,020 from holding Rush Street Interactive or generate 236.66% 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. Lime Technologies AB
Performance |
| Timeline |
| Rush Street Interactive |
| Lime Technologies |
Rush Street and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Lime Technologies
The main advantage of trading using opposite Rush Street and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Lime Technologies vs. Vitec Software Group | Lime Technologies vs. MIPS AB | Lime Technologies vs. Sinch AB | Lime Technologies vs. Stillfront Group AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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