Correlation Between Rush Street and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Rush Street and Saba Capital 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 Saba Capital 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 Saba Capital Income, you can compare the effects of market volatilities on Rush Street and Saba Capital 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 Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Saba Capital.
Diversification Opportunities for Rush Street and Saba Capital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Saba is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income 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 Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Rush Street i.e., Rush Street and Saba Capital go up and down completely randomly.
Pair Corralation between Rush Street and Saba Capital
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 10.72 times more return on investment than Saba Capital. However, Rush Street is 10.72 times more volatile than Saba Capital Income. It trades about 0.35 of its potential returns per unit of risk. Saba Capital Income is currently generating about 0.7 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 366.00 from holding Rush Street Interactive or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rush Street Interactive vs. Saba Capital Income
Performance |
| Timeline |
| Rush Street Interactive |
| Saba Capital Income |
Rush Street and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Saba Capital
The main advantage of trading using opposite Rush Street and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Rush Street vs. Chipotle Mexican Grill | Rush Street vs. Dominos Pizza | Rush Street vs. Yum Brands | Rush Street vs. The Wendys Co |
| Saba Capital vs. Eaton Vance National | Saba Capital vs. Invesco High Income | Saba Capital vs. Blackrock Muniholdings Ny | Saba Capital vs. Nuveen California Select |
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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