Correlation Between Rush Street and Worthington Industries
Can any of the company-specific risk be diversified away by investing in both Rush Street and Worthington Industries 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 Worthington Industries 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 Worthington Industries, you can compare the effects of market volatilities on Rush Street and Worthington Industries 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 Worthington Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Worthington Industries.
Diversification Opportunities for Rush Street and Worthington Industries
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Worthington is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Worthington Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worthington Industries 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 Worthington Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worthington Industries has no effect on the direction of Rush Street i.e., Rush Street and Worthington Industries go up and down completely randomly.
Pair Corralation between Rush Street and Worthington Industries
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.36 times more return on investment than Worthington Industries. However, Rush Street is 1.36 times more volatile than Worthington Industries. It trades about 0.33 of its potential returns per unit of risk. Worthington Industries is currently generating about 0.04 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 292.00 from holding Rush Street Interactive or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Worthington Industries
Performance |
| Timeline |
| Rush Street Interactive |
| Worthington Industries |
Rush Street and Worthington Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Worthington Industries
The main advantage of trading using opposite Rush Street and Worthington Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Worthington Industries 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 Worthington Industries will offset losses from the drop in Worthington Industries' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Worthington Industries vs. Allegheny Technologies Incorporated | Worthington Industries vs. Haynes International | Worthington Industries vs. ESAB Corp | Worthington Industries vs. Insteel Industries |
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
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |