Correlation Between Rush Street and Advanced Technology
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By analyzing existing cross correlation between Rush Street Interactive and Advanced Technology Materials, you can compare the effects of market volatilities on Rush Street and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Advanced Technology.
Diversification Opportunities for Rush Street and Advanced Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Advanced is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Rush Street i.e., Rush Street and Advanced Technology go up and down completely randomly.
Pair Corralation between Rush Street and Advanced Technology
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.93 times more return on investment than Advanced Technology. However, Rush Street Interactive is 1.08 times less risky than Advanced Technology. It trades about 0.36 of its potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.14 per unit of risk. If you would invest 1,082 in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rush Street Interactive vs. Advanced Technology Materials
Performance |
| Timeline |
| Rush Street Interactive |
| Advanced Technology |
Rush Street and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Advanced Technology
The main advantage of trading using opposite Rush Street and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Rush Street vs. The Wendys Co | Rush Street vs. Shake Shack | Rush Street vs. Papa Johns International | Rush Street vs. Darden Restaurants |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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