Correlation Between Rush Street and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Rush Street and Oxford Industries 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 Oxford Industries 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 Oxford Industries, you can compare the effects of market volatilities on Rush Street and Oxford Industries 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 Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Oxford Industries.
Diversification Opportunities for Rush Street and Oxford Industries
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Oxford is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries 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 Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of Rush Street i.e., Rush Street and Oxford Industries go up and down completely randomly.
Pair Corralation between Rush Street and Oxford Industries
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.53 times more return on investment than Oxford Industries. However, Rush Street is 1.53 times more volatile than Oxford Industries. It trades about 0.2 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.03 per unit of risk. If you would invest 1,085 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 336.00 from holding Rush Street Interactive or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Oxford Industries
Performance |
| Timeline |
| Rush Street Interactive |
| Oxford Industries |
Rush Street and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Oxford Industries
The main advantage of trading using opposite Rush Street and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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