Correlation Between Rush Street and Profoto Holding
Can any of the company-specific risk be diversified away by investing in both Rush Street and Profoto 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 Profoto 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 Profoto Holding AB, you can compare the effects of market volatilities on Rush Street and Profoto 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 Profoto Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Profoto Holding.
Diversification Opportunities for Rush Street and Profoto Holding
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Profoto is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Profoto Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profoto Holding AB 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 Profoto Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profoto Holding AB has no effect on the direction of Rush Street i.e., Rush Street and Profoto Holding go up and down completely randomly.
Pair Corralation between Rush Street and Profoto Holding
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.14 times more return on investment than Profoto Holding. However, Rush Street is 1.14 times more volatile than Profoto Holding AB. It trades about 0.29 of its potential returns per unit of risk. Profoto Holding AB is currently generating about -0.06 per unit of risk. If you would invest 1,058 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 274.00 from holding Rush Street Interactive or generate 25.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Profoto Holding AB
Performance |
| Timeline |
| Rush Street Interactive |
| Profoto Holding AB |
Rush Street and Profoto Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Profoto Holding
The main advantage of trading using opposite Rush Street and Profoto Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Profoto 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 Profoto Holding will offset losses from the drop in Profoto Holding's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Profoto Holding vs. Awardit AB | Profoto Holding vs. RVRC Holding AB | Profoto Holding vs. Smart Eye AB | Profoto Holding vs. KABE Group AB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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