Correlation Between Rush Street and Nextier Oilfield
Can any of the company-specific risk be diversified away by investing in both Rush Street and Nextier Oilfield 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 Nextier Oilfield 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 Nextier Oilfield Solutions, you can compare the effects of market volatilities on Rush Street and Nextier Oilfield 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 Nextier Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Nextier Oilfield.
Diversification Opportunities for Rush Street and Nextier Oilfield
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Nextier is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Nextier Oilfield Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextier Oilfield Sol 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 Nextier Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextier Oilfield Sol has no effect on the direction of Rush Street i.e., Rush Street and Nextier Oilfield go up and down completely randomly.
Pair Corralation between Rush Street and Nextier Oilfield
If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 340.00 from holding Rush Street Interactive or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Rush Street Interactive vs. Nextier Oilfield Solutions
Performance |
| Timeline |
| Rush Street Interactive |
| Nextier Oilfield Sol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rush Street and Nextier Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Nextier Oilfield
The main advantage of trading using opposite Rush Street and Nextier Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Nextier Oilfield 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 Nextier Oilfield will offset losses from the drop in Nextier Oilfield's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Nextier Oilfield vs. ProPetro Holding Corp | Nextier Oilfield vs. Select Energy Services | Nextier Oilfield vs. Liberty Oilfield Services | Nextier Oilfield vs. Cactus Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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