Correlation Between Rush Street and STI
Can any of the company-specific risk be diversified away by investing in both Rush Street and STI 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 STI 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 STI Co, you can compare the effects of market volatilities on Rush Street and STI 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 STI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and STI.
Diversification Opportunities for Rush Street and STI
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and STI is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and STI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Co 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 STI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Co has no effect on the direction of Rush Street i.e., Rush Street and STI go up and down completely randomly.
Pair Corralation between Rush Street and STI
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.79 times more return on investment than STI. However, Rush Street Interactive is 1.27 times less risky than STI. It trades about 0.12 of its potential returns per unit of risk. STI Co is currently generating about 0.04 per unit of risk. If you would invest 320.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 1,012 from holding Rush Street Interactive or generate 316.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.78% |
| Values | Daily Returns |
Rush Street Interactive vs. STI Co
Performance |
| Timeline |
| Rush Street Interactive |
| STI Co |
Rush Street and STI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and STI
The main advantage of trading using opposite Rush Street and STI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, STI 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 STI will offset losses from the drop in STI's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| STI vs. TJ media Co | STI vs. Korea Computer | STI vs. SKONEC Entertainment Co | STI vs. FNC Entertainment Co |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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