Correlation Between Rush Street and Auxly Cannabis
Can any of the company-specific risk be diversified away by investing in both Rush Street and Auxly Cannabis 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 Auxly Cannabis 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 Auxly Cannabis Group, you can compare the effects of market volatilities on Rush Street and Auxly Cannabis 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 Auxly Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Auxly Cannabis.
Diversification Opportunities for Rush Street and Auxly Cannabis
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Auxly is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Auxly Cannabis Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auxly Cannabis Group 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 Auxly Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auxly Cannabis Group has no effect on the direction of Rush Street i.e., Rush Street and Auxly Cannabis go up and down completely randomly.
Pair Corralation between Rush Street and Auxly Cannabis
Considering the 90-day investment horizon Rush Street is expected to generate 3.86 times less return on investment than Auxly Cannabis. But when comparing it to its historical volatility, Rush Street Interactive is 4.3 times less risky than Auxly Cannabis. It trades about 0.09 of its potential returns per unit of risk. Auxly Cannabis Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Auxly Cannabis Group on August 30, 2024 and sell it today you would earn a total of 1.75 from holding Auxly Cannabis Group or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Rush Street Interactive vs. Auxly Cannabis Group
Performance |
| Timeline |
| Rush Street Interactive |
| Auxly Cannabis Group |
Rush Street and Auxly Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Auxly Cannabis
The main advantage of trading using opposite Rush Street and Auxly Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Auxly Cannabis 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 Auxly Cannabis will offset losses from the drop in Auxly Cannabis' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Auxly Cannabis vs. OrganiGram Holdings | Auxly Cannabis vs. Tilray Inc | Auxly Cannabis vs. Lifeist Wellness | Auxly Cannabis vs. Medipharm Labs Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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