Correlation Between Rush Street and BankUnited
Can any of the company-specific risk be diversified away by investing in both Rush Street and BankUnited 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 BankUnited 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 BankUnited, you can compare the effects of market volatilities on Rush Street and BankUnited 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 BankUnited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and BankUnited.
Diversification Opportunities for Rush Street and BankUnited
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and BankUnited is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and BankUnited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankUnited 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 BankUnited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankUnited has no effect on the direction of Rush Street i.e., Rush Street and BankUnited go up and down completely randomly.
Pair Corralation between Rush Street and BankUnited
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.28 times more return on investment than BankUnited. However, Rush Street is 1.28 times more volatile than BankUnited. It trades about 0.09 of its potential returns per unit of risk. BankUnited is currently generating about 0.03 per unit of risk. If you would invest 419.00 in Rush Street Interactive on November 19, 2024 and sell it today you would earn a total of 1,251 from holding Rush Street Interactive or generate 298.57% 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. BankUnited
Performance |
| Timeline |
| Rush Street Interactive |
| BankUnited |
Rush Street and BankUnited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and BankUnited
The main advantage of trading using opposite Rush Street and BankUnited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, BankUnited 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 BankUnited will offset losses from the drop in BankUnited's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| BankUnited vs. International Bancshares | BankUnited vs. Hilltop Holdings | BankUnited vs. FB Financial Corp | BankUnited vs. Red River Bancshares |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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