Correlation Between Rush Street and Hoya Capital
Can any of the company-specific risk be diversified away by investing in both Rush Street and Hoya Capital 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 Hoya Capital 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 Hoya Capital High, you can compare the effects of market volatilities on Rush Street and Hoya Capital 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 Hoya Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Hoya Capital.
Diversification Opportunities for Rush Street and Hoya Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Hoya is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Hoya Capital High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoya Capital High 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 Hoya Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoya Capital High has no effect on the direction of Rush Street i.e., Rush Street and Hoya Capital go up and down completely randomly.
Pair Corralation between Rush Street and Hoya Capital
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.15 times more return on investment than Hoya Capital. However, Rush Street is 3.15 times more volatile than Hoya Capital High. It trades about 0.15 of its potential returns per unit of risk. Hoya Capital High is currently generating about 0.06 per unit of risk. If you would invest 421.00 in Rush Street Interactive on August 26, 2024 and sell it today you would earn a total of 911.00 from holding Rush Street Interactive or generate 216.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Hoya Capital High
Performance |
| Timeline |
| Rush Street Interactive |
| Hoya Capital High |
Rush Street and Hoya Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Hoya Capital
The main advantage of trading using opposite Rush Street and Hoya Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Hoya Capital 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 Hoya Capital will offset losses from the drop in Hoya Capital's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Hoya Capital vs. Vanguard Real Estate | Hoya Capital vs. Howard Hughes | Hoya Capital vs. Site Centers Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |