Correlation Between Rush Street and Ackerstein
Can any of the company-specific risk be diversified away by investing in both Rush Street and Ackerstein 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 Ackerstein 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 Ackerstein Group, you can compare the effects of market volatilities on Rush Street and Ackerstein 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 Ackerstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Ackerstein.
Diversification Opportunities for Rush Street and Ackerstein
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and Ackerstein is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Ackerstein Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackerstein Group 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 Ackerstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackerstein Group has no effect on the direction of Rush Street i.e., Rush Street and Ackerstein go up and down completely randomly.
Pair Corralation between Rush Street and Ackerstein
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.48 times more return on investment than Ackerstein. However, Rush Street is 1.48 times more volatile than Ackerstein Group. It trades about 0.09 of its potential returns per unit of risk. Ackerstein Group is currently generating about 0.06 per unit of risk. 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 | Weak |
| Accuracy | 77.82% |
| Values | Daily Returns |
Rush Street Interactive vs. Ackerstein Group
Performance |
| Timeline |
| Rush Street Interactive |
| Ackerstein Group |
Rush Street and Ackerstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Ackerstein
The main advantage of trading using opposite Rush Street and Ackerstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Ackerstein 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 Ackerstein will offset losses from the drop in Ackerstein's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Ackerstein vs. Aura Investments | Ackerstein vs. Hiron Trade Investments Industrial | Ackerstein vs. Israel China Biotechnology | Ackerstein vs. YD More Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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