Correlation Between Rush Street and Southern California
Can any of the company-specific risk be diversified away by investing in both Rush Street and Southern California 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 Southern California 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 Southern California Bancorp, you can compare the effects of market volatilities on Rush Street and Southern California 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 Southern California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Southern California.
Diversification Opportunities for Rush Street and Southern California
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Southern is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Southern California Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern California 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 Southern California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern California has no effect on the direction of Rush Street i.e., Rush Street and Southern California go up and down completely randomly.
Pair Corralation between Rush Street and Southern California
Considering the 90-day investment horizon Rush Street Interactive is expected to under-perform the Southern California. In addition to that, Rush Street is 2.69 times more volatile than Southern California Bancorp. It trades about -0.17 of its total potential returns per unit of risk. Southern California Bancorp is currently generating about 0.03 per unit of volatility. If you would invest 1,491 in Southern California Bancorp on December 11, 2024 and sell it today you would earn a total of 23.00 from holding Southern California Bancorp or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Southern California Bancorp
Performance |
| Timeline |
| Rush Street Interactive |
| Southern California |
Rush Street and Southern California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Southern California
The main advantage of trading using opposite Rush Street and Southern California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Southern California 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 Southern California will offset losses from the drop in Southern California's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Southern California vs. Avidbank Holdings | Southern California vs. American Riviera Bank | Southern California vs. American Business Bk | Southern California vs. Private Bancorp of |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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