Correlation Between Rush Street and SUN HUNG
Can any of the company-specific risk be diversified away by investing in both Rush Street and SUN HUNG 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 SUN HUNG 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 SUN HUNG KAI, you can compare the effects of market volatilities on Rush Street and SUN HUNG 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 SUN HUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and SUN HUNG.
Diversification Opportunities for Rush Street and SUN HUNG
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and SUN is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and SUN HUNG KAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN HUNG KAI 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 SUN HUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN HUNG KAI has no effect on the direction of Rush Street i.e., Rush Street and SUN HUNG go up and down completely randomly.
Pair Corralation between Rush Street and SUN HUNG
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.03 times more return on investment than SUN HUNG. However, Rush Street is 1.03 times more volatile than SUN HUNG KAI. It trades about 0.15 of its potential returns per unit of risk. SUN HUNG KAI is currently generating about 0.09 per unit of risk. If you would invest 585.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 747.00 from holding Rush Street Interactive or generate 127.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.95% |
| Values | Daily Returns |
Rush Street Interactive vs. SUN HUNG KAI
Performance |
| Timeline |
| Rush Street Interactive |
| SUN HUNG KAI |
Rush Street and SUN HUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and SUN HUNG
The main advantage of trading using opposite Rush Street and SUN HUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, SUN HUNG 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 SUN HUNG will offset losses from the drop in SUN HUNG's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| SUN HUNG vs. EIDESVIK OFFSHORE NK | SUN HUNG vs. UNITED RENTALS | SUN HUNG vs. WILLIS LEASE FIN | SUN HUNG vs. Check Point Software |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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