Correlation Between Rush Street and UBS AG
Can any of the company-specific risk be diversified away by investing in both Rush Street and UBS AG 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 UBS AG 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 UBS AG London, you can compare the effects of market volatilities on Rush Street and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and UBS AG.
Diversification Opportunities for Rush Street and UBS AG
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and UBS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of Rush Street i.e., Rush Street and UBS AG go up and down completely randomly.
Pair Corralation between Rush Street and UBS AG
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.31 times more return on investment than UBS AG. However, Rush Street is 4.31 times more volatile than UBS AG London. It trades about 0.09 of its potential returns per unit of risk. UBS AG London is currently generating about 0.08 per unit of risk. If you would invest 377.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,044 from holding Rush Street Interactive or generate 276.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. UBS AG London
Performance |
| Timeline |
| Rush Street Interactive |
| UBS AG London |
Rush Street and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and UBS AG
The main advantage of trading using opposite Rush Street and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| UBS AG vs. UBS AG London | UBS AG vs. UBS AG London | UBS AG vs. ETRACS Quarterly Pay | UBS AG vs. VanEck BDC Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |