Correlation Between Rush Street and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Rush Street and Delek Automotive 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 Delek Automotive 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 Delek Automotive Systems, you can compare the effects of market volatilities on Rush Street and Delek Automotive 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 Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Delek Automotive.
Diversification Opportunities for Rush Street and Delek Automotive
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Delek is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems 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 Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Rush Street i.e., Rush Street and Delek Automotive go up and down completely randomly.
Pair Corralation between Rush Street and Delek Automotive
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.68 times more return on investment than Delek Automotive. However, Rush Street is 1.68 times more volatile than Delek Automotive Systems. It trades about 0.41 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about 0.41 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 411.00 from holding Rush Street Interactive or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Rush Street Interactive vs. Delek Automotive Systems
Performance |
| Timeline |
| Rush Street Interactive |
| Delek Automotive Systems |
Rush Street and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Delek Automotive
The main advantage of trading using opposite Rush Street and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Delek Automotive 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 Delek Automotive will offset losses from the drop in Delek Automotive's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Delek Automotive vs. Direct Capital Investments | Delek Automotive vs. Safe T Group | Delek Automotive vs. Israel China Biotechnology | Delek Automotive vs. Biomedix Incubator |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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