Correlation Between Rush Street and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Rush Street and Credit Suisse 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 Credit Suisse 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 Credit Suisse Floating, you can compare the effects of market volatilities on Rush Street and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Credit Suisse.
Diversification Opportunities for Rush Street and Credit Suisse
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Credit is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Floating has no effect on the direction of Rush Street i.e., Rush Street and Credit Suisse go up and down completely randomly.
Pair Corralation between Rush Street and Credit Suisse
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 20.57 times more return on investment than Credit Suisse. However, Rush Street is 20.57 times more volatile than Credit Suisse Floating. It trades about 0.12 of its potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.21 per unit of risk. If you would invest 313.00 in Rush Street Interactive on August 26, 2024 and sell it today you would earn a total of 1,019 from holding Rush Street Interactive or generate 325.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Credit Suisse Floating
Performance |
| Timeline |
| Rush Street Interactive |
| Credit Suisse Floating |
Rush Street and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Credit Suisse
The main advantage of trading using opposite Rush Street and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Managed |
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 CEOs Directory module to screen CEOs from public companies around the world.
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