Correlation Between Rush Street and American Beacon
Can any of the company-specific risk be diversified away by investing in both Rush Street and American Beacon 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 American Beacon 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 American Beacon Bridgeway, you can compare the effects of market volatilities on Rush Street and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and American Beacon.
Diversification Opportunities for Rush Street and American Beacon
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rush and American is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and American Beacon Bridgeway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Bridgeway 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Bridgeway has no effect on the direction of Rush Street i.e., Rush Street and American Beacon go up and down completely randomly.
Pair Corralation between Rush Street and American Beacon
Considering the 90-day investment horizon Rush Street Interactive is expected to under-perform the American Beacon. In addition to that, Rush Street is 3.6 times more volatile than American Beacon Bridgeway. It trades about -0.17 of its total potential returns per unit of risk. American Beacon Bridgeway is currently generating about -0.12 per unit of volatility. If you would invest 3,315 in American Beacon Bridgeway on December 11, 2024 and sell it today you would lose (193.00) from holding American Beacon Bridgeway or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. American Beacon Bridgeway
Performance |
| Timeline |
| Rush Street Interactive |
| American Beacon Bridgeway |
Rush Street and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and American Beacon
The main advantage of trading using opposite Rush Street and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| American Beacon vs. American Funds Retirement | American Beacon vs. Pgim Conservative Retirement | American Beacon vs. Tiaa Cref Lifestyle Moderate | American Beacon vs. Wealthbuilder Moderate Balanced |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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