Correlation Between Rush Street and BTS Group
Can any of the company-specific risk be diversified away by investing in both Rush Street and BTS Group 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 BTS Group 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 BTS Group Holdings, you can compare the effects of market volatilities on Rush Street and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and BTS Group.
Diversification Opportunities for Rush Street and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rush and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Rush Street i.e., Rush Street and BTS Group go up and down completely randomly.
Pair Corralation between Rush Street and BTS Group
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.74 times more return on investment than BTS Group. However, Rush Street is 2.74 times more volatile than BTS Group Holdings. It trades about 0.09 of its potential returns per unit of risk. BTS Group Holdings is currently generating about -0.01 per unit of risk. If you would invest 354.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 1,097 from holding Rush Street Interactive or generate 309.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. BTS Group Holdings
Performance |
| Timeline |
| Rush Street Interactive |
| BTS Group Holdings |
Rush Street and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and BTS Group
The main advantage of trading using opposite Rush Street and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| BTS Group vs. Allegheny Technologies Incorporated | BTS Group vs. Century Aluminum | BTS Group vs. United States Steel | BTS Group vs. Ironveld Plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |