Correlation Between Rush Street and CIBC Active
Can any of the company-specific risk be diversified away by investing in both Rush Street and CIBC Active 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 CIBC Active 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 CIBC Active Investment, you can compare the effects of market volatilities on Rush Street and CIBC Active 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 CIBC Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and CIBC Active.
Diversification Opportunities for Rush Street and CIBC Active
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and CIBC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and CIBC Active Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Active Investment 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 CIBC Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Active Investment has no effect on the direction of Rush Street i.e., Rush Street and CIBC Active go up and down completely randomly.
Pair Corralation between Rush Street and CIBC Active
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 40.11 times more return on investment than CIBC Active. However, Rush Street is 40.11 times more volatile than CIBC Active Investment. It trades about 0.36 of its potential returns per unit of risk. CIBC Active Investment is currently generating about 0.2 per unit of risk. If you would invest 1,082 in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Rush Street Interactive vs. CIBC Active Investment
Performance |
| Timeline |
| Rush Street Interactive |
| CIBC Active Investment |
Rush Street and CIBC Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and CIBC Active
The main advantage of trading using opposite Rush Street and CIBC Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, CIBC Active 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 CIBC Active will offset losses from the drop in CIBC Active's long position.| Rush Street vs. The Wendys Co | Rush Street vs. Shake Shack | Rush Street vs. Papa Johns International | Rush Street vs. Darden Restaurants |
| CIBC Active vs. CIBC Active Investment | CIBC Active vs. CIBC Flexible Yield | CIBC Active vs. CIBC Core Fixed | CIBC Active vs. Brompton Flaherty Crumrine |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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