Correlation Between Rush Street and JP Morgan
Can any of the company-specific risk be diversified away by investing in both Rush Street and JP Morgan 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 JP Morgan 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 JP Morgan Exchange Traded, you can compare the effects of market volatilities on Rush Street and JP Morgan 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 JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and JP Morgan.
Diversification Opportunities for Rush Street and JP Morgan
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and BBSB is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange 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 JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of Rush Street i.e., Rush Street and JP Morgan go up and down completely randomly.
Pair Corralation between Rush Street and JP Morgan
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 32.4 times more return on investment than JP Morgan. However, Rush Street is 32.4 times more volatile than JP Morgan Exchange Traded. It trades about 0.22 of its potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about -0.12 per unit of risk. If you would invest 1,085 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 366.00 from holding Rush Street Interactive or generate 33.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Rush Street Interactive vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| Rush Street Interactive |
| JP Morgan Exchange |
Rush Street and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and JP Morgan
The main advantage of trading using opposite Rush Street and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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