Correlation Between Rush Street and American Shipping
Can any of the company-specific risk be diversified away by investing in both Rush Street and American Shipping 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 American Shipping 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 American Shipping, you can compare the effects of market volatilities on Rush Street and American Shipping 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 American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and American Shipping.
Diversification Opportunities for Rush Street and American Shipping
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and American is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shipping 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 American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of Rush Street i.e., Rush Street and American Shipping go up and down completely randomly.
Pair Corralation between Rush Street and American Shipping
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.89 times more return on investment than American Shipping. However, Rush Street is 2.89 times more volatile than American Shipping. It trades about 0.36 of its potential returns per unit of risk. American Shipping is currently generating about -0.25 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. American Shipping
Performance |
| Timeline |
| Rush Street Interactive |
| American Shipping |
Rush Street and American Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and American Shipping
The main advantage of trading using opposite Rush Street and American Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, American Shipping 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 American Shipping will offset losses from the drop in American Shipping's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| American Shipping vs. Western Bulk Chartering | American Shipping vs. AP Moeller | American Shipping vs. AP Mller | American Shipping vs. Pacific Basin Shipping |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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