Correlation Between Rush Street and Passage Bio
Can any of the company-specific risk be diversified away by investing in both Rush Street and Passage Bio 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 Passage Bio 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 Passage Bio, you can compare the effects of market volatilities on Rush Street and Passage Bio 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 Passage Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Passage Bio.
Diversification Opportunities for Rush Street and Passage Bio
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Passage is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Passage Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passage Bio 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 Passage Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passage Bio has no effect on the direction of Rush Street i.e., Rush Street and Passage Bio go up and down completely randomly.
Pair Corralation between Rush Street and Passage Bio
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.57 times more return on investment than Passage Bio. However, Rush Street Interactive is 1.74 times less risky than Passage Bio. It trades about 0.13 of its potential returns per unit of risk. Passage Bio is currently generating about 0.03 per unit of risk. If you would invest 305.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,137 from holding Rush Street Interactive or generate 372.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Passage Bio
Performance |
| Timeline |
| Rush Street Interactive |
| Passage Bio |
Rush Street and Passage Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Passage Bio
The main advantage of trading using opposite Rush Street and Passage Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Passage Bio 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 Passage Bio will offset losses from the drop in Passage Bio's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Passage Bio vs. Cue Biopharma | Passage Bio vs. Eliem Therapeutics | Passage Bio vs. Inhibrx | Passage Bio vs. Molecular Partners AG |
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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