Correlation Between Rush Street and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Rush Street and Eagle Point 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 Eagle Point 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 Eagle Point Credit, you can compare the effects of market volatilities on Rush Street and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Eagle Point.
Diversification Opportunities for Rush Street and Eagle Point
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rush and Eagle is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Rush Street i.e., Rush Street and Eagle Point go up and down completely randomly.
Pair Corralation between Rush Street and Eagle Point
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 11.5 times more return on investment than Eagle Point. However, Rush Street is 11.5 times more volatile than Eagle Point Credit. It trades about 0.09 of its potential returns per unit of risk. Eagle Point Credit is currently generating about 0.12 per unit of risk. If you would invest 364.00 in Rush Street Interactive on August 24, 2024 and sell it today you would earn a total of 968.00 from holding Rush Street Interactive or generate 265.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 43.75% |
| Values | Daily Returns |
Rush Street Interactive vs. Eagle Point Credit
Performance |
| Timeline |
| Rush Street Interactive |
| Eagle Point Credit |
Rush Street and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Eagle Point
The main advantage of trading using opposite Rush Street and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Eagle Point vs. Blackstone Group | Eagle Point vs. BlackRock | Eagle Point vs. Apollo Global Management | Eagle Point vs. Investor AB ser |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |