Correlation Between Rush Street and ATON
Can any of the company-specific risk be diversified away by investing in both Rush Street and ATON 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 ATON 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 ATON Inc, you can compare the effects of market volatilities on Rush Street and ATON 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 ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and ATON.
Diversification Opportunities for Rush Street and ATON
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and ATON is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc 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 ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Rush Street i.e., Rush Street and ATON go up and down completely randomly.
Pair Corralation between Rush Street and ATON
Considering the 90-day investment horizon Rush Street is expected to generate 1.24 times less return on investment than ATON. But when comparing it to its historical volatility, Rush Street Interactive is 2.0 times less risky than ATON. It trades about 0.29 of its potential returns per unit of risk. ATON Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 408,000 in ATON Inc on August 25, 2024 and sell it today you would earn a total of 116,000 from holding ATON Inc or generate 28.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. ATON Inc
Performance |
| Timeline |
| Rush Street Interactive |
| ATON Inc |
Rush Street and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and ATON
The main advantage of trading using opposite Rush Street and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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