Correlation Between Rush Street and Northrim BanCorp
Can any of the company-specific risk be diversified away by investing in both Rush Street and Northrim BanCorp 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 Northrim BanCorp 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 Northrim BanCorp, you can compare the effects of market volatilities on Rush Street and Northrim BanCorp 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 Northrim BanCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Northrim BanCorp.
Diversification Opportunities for Rush Street and Northrim BanCorp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Northrim is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Northrim BanCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northrim BanCorp 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 Northrim BanCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northrim BanCorp has no effect on the direction of Rush Street i.e., Rush Street and Northrim BanCorp go up and down completely randomly.
Pair Corralation between Rush Street and Northrim BanCorp
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.93 times more return on investment than Northrim BanCorp. However, Rush Street Interactive is 1.07 times less risky than Northrim BanCorp. It trades about 0.36 of its potential returns per unit of risk. Northrim BanCorp is currently generating about 0.33 per unit of risk. 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 | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Northrim BanCorp
Performance |
| Timeline |
| Rush Street Interactive |
| Northrim BanCorp |
Rush Street and Northrim BanCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Northrim BanCorp
The main advantage of trading using opposite Rush Street and Northrim BanCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Northrim BanCorp 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 Northrim BanCorp will offset losses from the drop in Northrim BanCorp's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Northrim BanCorp vs. Peoples Bancorp | Northrim BanCorp vs. Eagle Bancorp | Northrim BanCorp vs. United Bankshares | Northrim BanCorp vs. Pacific Premier Bancorp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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