Correlation Between Rush Street and Dimensional ETF
Can any of the company-specific risk be diversified away by investing in both Rush Street and Dimensional ETF 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 Dimensional ETF 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 Dimensional ETF Trust, you can compare the effects of market volatilities on Rush Street and Dimensional ETF 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 Dimensional ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Dimensional ETF.
Diversification Opportunities for Rush Street and Dimensional ETF
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Dimensional is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Dimensional ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional ETF Trust 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 Dimensional ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional ETF Trust has no effect on the direction of Rush Street i.e., Rush Street and Dimensional ETF go up and down completely randomly.
Pair Corralation between Rush Street and Dimensional ETF
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 9.3 times more return on investment than Dimensional ETF. However, Rush Street is 9.3 times more volatile than Dimensional ETF Trust. It trades about 0.24 of its potential returns per unit of risk. Dimensional ETF Trust is currently generating about -0.01 per unit of risk. If you would invest 937.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 484.00 from holding Rush Street Interactive or generate 51.65% 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. Dimensional ETF Trust
Performance |
| Timeline |
| Rush Street Interactive |
| Dimensional ETF Trust |
Rush Street and Dimensional ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Dimensional ETF
The main advantage of trading using opposite Rush Street and Dimensional ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Dimensional ETF 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 Dimensional ETF will offset losses from the drop in Dimensional ETF's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. Dimensional Core Equity | Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. Dimensional Emerging Core |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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