Correlation Between Rush Street and Security Bank
Can any of the company-specific risk be diversified away by investing in both Rush Street and Security Bank 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 Security Bank 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 Security Bank Corp, you can compare the effects of market volatilities on Rush Street and Security Bank 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 Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Security Bank.
Diversification Opportunities for Rush Street and Security Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and Security is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank Corp 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of Rush Street i.e., Rush Street and Security Bank go up and down completely randomly.
Pair Corralation between Rush Street and Security Bank
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.0 times more return on investment than Security Bank. However, Rush Street is 1.0 times more volatile than Security Bank Corp. It trades about 0.25 of its potential returns per unit of risk. Security Bank Corp is currently generating about 0.21 per unit of risk. If you would invest 892.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 488.00 from holding Rush Street Interactive or generate 54.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Security Bank Corp
Performance |
| Timeline |
| Rush Street Interactive |
| Security Bank Corp |
Rush Street and Security Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Security Bank
The main advantage of trading using opposite Rush Street and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Security Bank 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 Security Bank will offset losses from the drop in Security Bank's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |