Correlation Between Rush Street and George Weston
Can any of the company-specific risk be diversified away by investing in both Rush Street and George Weston 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 George Weston 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 George Weston Limited, you can compare the effects of market volatilities on Rush Street and George Weston 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 George Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and George Weston.
Diversification Opportunities for Rush Street and George Weston
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and George is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and George Weston Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Weston Limited 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 George Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Weston Limited has no effect on the direction of Rush Street i.e., Rush Street and George Weston go up and down completely randomly.
Pair Corralation between Rush Street and George Weston
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.37 times more return on investment than George Weston. However, Rush Street is 3.37 times more volatile than George Weston Limited. It trades about 0.13 of its potential returns per unit of risk. George Weston Limited is currently generating about 0.1 per unit of risk. If you would invest 305.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,137 from holding Rush Street Interactive or generate 372.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Rush Street Interactive vs. George Weston Limited
Performance |
| Timeline |
| Rush Street Interactive |
| George Weston Limited |
Rush Street and George Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and George Weston
The main advantage of trading using opposite Rush Street and George Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, George Weston 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 George Weston will offset losses from the drop in George Weston's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| George Weston vs. Maple Leaf Foods | George Weston vs. Saputo Inc | George Weston vs. Forstrong Global Income | George Weston vs. iShares Canadian HYBrid |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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