Correlation Between Rush Street and Amarin PLC
Can any of the company-specific risk be diversified away by investing in both Rush Street and Amarin PLC 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 Amarin PLC 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 Amarin PLC, you can compare the effects of market volatilities on Rush Street and Amarin PLC 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 Amarin PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Amarin PLC.
Diversification Opportunities for Rush Street and Amarin PLC
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Amarin is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Amarin PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarin PLC 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 Amarin PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarin PLC has no effect on the direction of Rush Street i.e., Rush Street and Amarin PLC go up and down completely randomly.
Pair Corralation between Rush Street and Amarin PLC
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.97 times more return on investment than Amarin PLC. However, Rush Street Interactive is 1.03 times less risky than Amarin PLC. It trades about 0.41 of its potential returns per unit of risk. Amarin PLC is currently generating about -0.24 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Amarin PLC
Performance |
| Timeline |
| Rush Street Interactive |
| Amarin PLC |
Rush Street and Amarin PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Amarin PLC
The main advantage of trading using opposite Rush Street and Amarin PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Amarin PLC 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 Amarin PLC will offset losses from the drop in Amarin PLC's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Amarin PLC vs. Scilex Holding | Amarin PLC vs. Biogen Inc | Amarin PLC vs. Gilead Sciences | Amarin PLC vs. AstraZeneca PLC ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets |