Correlation Between Rush Street and AGNC Investment
Can any of the company-specific risk be diversified away by investing in both Rush Street and AGNC Investment 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 AGNC Investment 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 AGNC Investment Corp, you can compare the effects of market volatilities on Rush Street and AGNC Investment 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 AGNC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and AGNC Investment.
Diversification Opportunities for Rush Street and AGNC Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and AGNC is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and AGNC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC Investment Corp 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 AGNC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC Investment Corp has no effect on the direction of Rush Street i.e., Rush Street and AGNC Investment go up and down completely randomly.
Pair Corralation between Rush Street and AGNC Investment
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.75 times more return on investment than AGNC Investment. However, Rush Street is 3.75 times more volatile than AGNC Investment Corp. It trades about 0.35 of its potential returns per unit of risk. AGNC Investment Corp is currently generating about 0.15 per unit of risk. If you would invest 1,061 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. AGNC Investment Corp
Performance |
| Timeline |
| Rush Street Interactive |
| AGNC Investment Corp |
Rush Street and AGNC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and AGNC Investment
The main advantage of trading using opposite Rush Street and AGNC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, AGNC Investment 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 AGNC Investment will offset losses from the drop in AGNC Investment's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| AGNC Investment vs. Two Harbors Investments | AGNC Investment vs. Chimera Investment | AGNC Investment vs. ARMOUR Residential REIT | AGNC Investment vs. Arbor Realty Trust |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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