Correlation Between Rush Street and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both Rush Street and CullenFrost Bankers 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 CullenFrost Bankers 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 CullenFrost Bankers, you can compare the effects of market volatilities on Rush Street and CullenFrost Bankers 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 CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and CullenFrost Bankers.
Diversification Opportunities for Rush Street and CullenFrost Bankers
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and CullenFrost is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers 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 CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of Rush Street i.e., Rush Street and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between Rush Street and CullenFrost Bankers
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.44 times more return on investment than CullenFrost Bankers. However, Rush Street is 3.44 times more volatile than CullenFrost Bankers. It trades about 0.37 of its potential returns per unit of risk. CullenFrost Bankers is currently generating about -0.15 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 381.00 from holding Rush Street Interactive or generate 36.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. CullenFrost Bankers
Performance |
| Timeline |
| Rush Street Interactive |
| CullenFrost Bankers |
Rush Street and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and CullenFrost Bankers
The main advantage of trading using opposite Rush Street and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| CullenFrost Bankers vs. Truist Financial | CullenFrost Bankers vs. Citizens Financial Group | CullenFrost Bankers vs. Bank of America | CullenFrost Bankers vs. US Bancorp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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