Correlation Between Gan and Rush Street
Can any of the company-specific risk be diversified away by investing in both Gan and Rush Street 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 Gan and Rush Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan and Rush Street Interactive, you can compare the effects of market volatilities on Gan and Rush Street 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 Gan with a short position of Rush Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan and Rush Street.
Diversification Opportunities for Gan and Rush Street
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Rush is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Rush Street Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Street Interactive and Gan 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 Gan are associated (or correlated) with Rush Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Street Interactive has no effect on the direction of Gan i.e., Gan and Rush Street go up and down completely randomly.
Pair Corralation between Gan and Rush Street
Considering the 90-day investment horizon Gan is expected to generate 1.66 times less return on investment than Rush Street. In addition to that, Gan is 1.48 times more volatile than Rush Street Interactive. It trades about 0.04 of its total potential returns per unit of risk. Rush Street Interactive is currently generating about 0.09 per unit of volatility. If you would invest 358.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 974.00 from holding Rush Street Interactive or generate 272.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan vs. Rush Street Interactive
Performance |
| Timeline |
| Gan |
| Rush Street Interactive |
Gan and Rush Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan and Rush Street
The main advantage of trading using opposite Gan and Rush Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan position performs unexpectedly, Rush Street 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 Street will offset losses from the drop in Rush Street's long position.| Gan vs. Rush Street Interactive | Gan vs. Inspired Entertainment | Gan vs. PointsBet Holdings Limited | Gan vs. PlayAGS |
| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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