Correlation Between Rush Street and Aterian
Can any of the company-specific risk be diversified away by investing in both Rush Street and Aterian 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 Aterian 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 Aterian, you can compare the effects of market volatilities on Rush Street and Aterian 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 Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Aterian.
Diversification Opportunities for Rush Street and Aterian
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Aterian is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian 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 Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of Rush Street i.e., Rush Street and Aterian go up and down completely randomly.
Pair Corralation between Rush Street and Aterian
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.12 times more return on investment than Aterian. However, Rush Street is 1.12 times more volatile than Aterian. It trades about 0.33 of its potential returns per unit of risk. Aterian is currently generating about -0.02 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 292.00 from holding Rush Street Interactive or generate 28.08% 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. Aterian
Performance |
| Timeline |
| Rush Street Interactive |
| Aterian |
Rush Street and Aterian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Aterian
The main advantage of trading using opposite Rush Street and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |