Correlation Between Rush Street and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Rush Street and Skjern 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 Skjern 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 Skjern Bank AS, you can compare the effects of market volatilities on Rush Street and Skjern 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Skjern Bank.
Diversification Opportunities for Rush Street and Skjern Bank
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and Skjern is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank AS 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of Rush Street i.e., Rush Street and Skjern Bank go up and down completely randomly.
Pair Corralation between Rush Street and Skjern Bank
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.29 times more return on investment than Skjern Bank. However, Rush Street is 2.29 times more volatile than Skjern Bank AS. It trades about 0.13 of its potential returns per unit of risk. Skjern Bank AS is currently generating about 0.04 per unit of risk. If you would invest 304.00 in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of 1,138 from holding Rush Street Interactive or generate 374.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Rush Street Interactive vs. Skjern Bank AS
Performance |
| Timeline |
| Rush Street Interactive |
| Skjern Bank AS |
Rush Street and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Skjern Bank
The main advantage of trading using opposite Rush Street and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Skjern 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| Rush Street vs. Yum Brands | Rush Street vs. The Wendys Co | Rush Street vs. Wingstop | Rush Street vs. Shake Shack |
| Skjern Bank vs. Laan Spar Bank | Skjern Bank vs. Kreditbanken AS | Skjern Bank vs. Nordea Bank Abp | Skjern Bank vs. Formuepleje Mix Medium |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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