Correlation Between Driven Brands and Rush Enterprises

Can any of the company-specific risk be diversified away by investing in both Driven Brands and Rush Enterprises 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 Driven Brands and Rush Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Driven Brands Holdings and Rush Enterprises B, you can compare the effects of market volatilities on Driven Brands and Rush Enterprises 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 Driven Brands with a short position of Rush Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Driven Brands and Rush Enterprises.

Diversification Opportunities for Driven Brands and Rush Enterprises

0.33

Correlation Coefficient

Driven Brands  Rush Enterprises

Weak diversification

The 3 months correlation between Driven and Rush is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Driven Brands Holdings and Rush Enterprises B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Enterprises B and Driven Brands 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 Driven Brands Holdings are associated (or correlated) with Rush Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Enterprises B has no effect on the direction of Driven Brands i.e., Driven Brands and Rush Enterprises go up and down completely randomly.

Pair Corralation between Driven Brands and Rush Enterprises

Given the investment horizon of 90 days Driven Brands Holdings is expected to under-perform the Rush Enterprises. But the etf apears to be less risky and, when comparing its historical volatility, Driven Brands Holdings is 1.19 times less risky than Rush Enterprises. The etf trades about -0.18 of its potential returns per unit of risk. The Rush Enterprises B is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  5,453  in Rush Enterprises B on July 12, 2025 and sell it today you would earn a total of  63.00  from holding Rush Enterprises B or generate 1.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Driven Brands Holdings  vs.  Rush Enterprises B

Driven Brands Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Driven Brands Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Rush Enterprises B

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rush Enterprises B are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, Rush Enterprises is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Driven Brands and Rush Enterprises

The main advantage of trading using opposite Driven Brands and Rush Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Driven Brands position performs unexpectedly, Rush Enterprises 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 Rush Enterprises will offset losses from the drop in Rush Enterprises' long position.

The idea behind Driven Brands Holdings and Rush Enterprises B pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.