Correlation Between Rush Street and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Rush Street and Artisan Value 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 Artisan Value 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 Artisan Value Fund, you can compare the effects of market volatilities on Rush Street and Artisan Value 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 Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Artisan Value.
Diversification Opportunities for Rush Street and Artisan Value
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Artisan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value 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 Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value has no effect on the direction of Rush Street i.e., Rush Street and Artisan Value go up and down completely randomly.
Pair Corralation between Rush Street and Artisan Value
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 5.0 times more return on investment than Artisan Value. However, Rush Street is 5.0 times more volatile than Artisan Value Fund. It trades about 0.2 of its potential returns per unit of risk. Artisan Value Fund is currently generating about 0.13 per unit of risk. If you would invest 1,085 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 336.00 from holding Rush Street Interactive or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Artisan Value Fund
Performance |
| Timeline |
| Rush Street Interactive |
| Artisan Value |
Rush Street and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Artisan Value
The main advantage of trading using opposite Rush Street and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Artisan Value 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 Artisan Value will offset losses from the drop in Artisan Value'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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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