Correlation Between Rush Street and Thai OPP
Can any of the company-specific risk be diversified away by investing in both Rush Street and Thai OPP 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 Thai OPP 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 Thai OPP Public, you can compare the effects of market volatilities on Rush Street and Thai OPP 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 Thai OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Thai OPP.
Diversification Opportunities for Rush Street and Thai OPP
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and Thai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP Public 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 Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of Rush Street i.e., Rush Street and Thai OPP go up and down completely randomly.
Pair Corralation between Rush Street and Thai OPP
Considering the 90-day investment horizon Rush Street is expected to generate 5.95 times less return on investment than Thai OPP. But when comparing it to its historical volatility, Rush Street Interactive is 12.6 times less risky than Thai OPP. It trades about 0.09 of its potential returns per unit of risk. Thai OPP Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 15,196 in Thai OPP Public on August 28, 2024 and sell it today you would earn a total of 1,704 from holding Thai OPP Public or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.64% |
| Values | Daily Returns |
Rush Street Interactive vs. Thai OPP Public
Performance |
| Timeline |
| Rush Street Interactive |
| Thai OPP Public |
Rush Street and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Thai OPP
The main advantage of trading using opposite Rush Street and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Thai OPP 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 Thai OPP will offset losses from the drop in Thai OPP's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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