Correlation Between Rush Street and Nicoccino Holding
Can any of the company-specific risk be diversified away by investing in both Rush Street and Nicoccino Holding 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 Nicoccino Holding 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 Nicoccino Holding AB, you can compare the effects of market volatilities on Rush Street and Nicoccino Holding 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 Nicoccino Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Nicoccino Holding.
Diversification Opportunities for Rush Street and Nicoccino Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Nicoccino is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Nicoccino Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicoccino Holding 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 Nicoccino Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicoccino Holding has no effect on the direction of Rush Street i.e., Rush Street and Nicoccino Holding go up and down completely randomly.
Pair Corralation between Rush Street and Nicoccino Holding
Considering the 90-day investment horizon Rush Street is expected to generate 1.31 times less return on investment than Nicoccino Holding. But when comparing it to its historical volatility, Rush Street Interactive is 2.77 times less risky than Nicoccino Holding. It trades about 0.09 of its potential returns per unit of risk. Nicoccino Holding AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Nicoccino Holding AB on August 31, 2024 and sell it today you would lose (24.00) from holding Nicoccino Holding AB or give up 15.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Rush Street Interactive vs. Nicoccino Holding AB
Performance |
| Timeline |
| Rush Street Interactive |
| Nicoccino Holding |
Rush Street and Nicoccino Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Nicoccino Holding
The main advantage of trading using opposite Rush Street and Nicoccino Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Nicoccino Holding 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 Nicoccino Holding will offset losses from the drop in Nicoccino Holding's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Nicoccino Holding vs. Clean Motion AB | Nicoccino Holding vs. NetJobs Group AB | Nicoccino Holding vs. Klaria Pharma Holding | Nicoccino Holding vs. Nexam Chemical Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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