Correlation Between Rush Street and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Rush Street and Growth Fund 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 Growth Fund 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 Growth Fund Of, you can compare the effects of market volatilities on Rush Street and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Growth Fund.
Diversification Opportunities for Rush Street and Growth Fund
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Growth is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Rush Street i.e., Rush Street and Growth Fund go up and down completely randomly.
Pair Corralation between Rush Street and Growth Fund
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.64 times more return on investment than Growth Fund. However, Rush Street is 3.64 times more volatile than Growth Fund Of. It trades about 0.09 of its potential returns per unit of risk. Growth Fund Of is currently generating about 0.09 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 | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Growth Fund Of
Performance |
| Timeline |
| Rush Street Interactive |
| Growth Fund |
Rush Street and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Growth Fund
The main advantage of trading using opposite Rush Street and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Growth Fund vs. Income Fund Of | Growth Fund vs. New World Fund | Growth Fund vs. American Mutual Fund | Growth Fund vs. American Mutual Fund |
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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