Correlation Between Rush Street and Bankers Investment

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Rush Street and Bankers Investment 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 Bankers Investment 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 Bankers Investment Trust, you can compare the effects of market volatilities on Rush Street and Bankers Investment 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 Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Bankers Investment.

Diversification Opportunities for Rush Street and Bankers Investment

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Rush and Bankers is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust 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 Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Rush Street i.e., Rush Street and Bankers Investment go up and down completely randomly.

Pair Corralation between Rush Street and Bankers Investment

Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.66 times more return on investment than Bankers Investment. However, Rush Street is 4.66 times more volatile than Bankers Investment Trust. It trades about 0.13 of its potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.07 per unit of risk. If you would invest  305.00  in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of  1,137  from holding Rush Street Interactive or generate 372.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.94%
ValuesDaily Returns

Rush Street Interactive  vs.  Bankers Investment Trust

 Performance 
       Timeline  
Rush Street Interactive 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Rush Street Interactive are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Rush Street demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Bankers Investment Trust 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Bankers Investment Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Bankers Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Rush Street and Bankers Investment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rush Street and Bankers Investment

The main advantage of trading using opposite Rush Street and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Bankers Investment 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.
The idea behind Rush Street Interactive and Bankers Investment Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments