Correlation Between Rush Street and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both Rush Street and ProShares Trust 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 ProShares Trust 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 ProShares Trust, you can compare the effects of market volatilities on Rush Street and ProShares Trust 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 ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and ProShares Trust.
Diversification Opportunities for Rush Street and ProShares Trust
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and ProShares is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of Rush Street i.e., Rush Street and ProShares Trust go up and down completely randomly.
Pair Corralation between Rush Street and ProShares Trust
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.74 times more return on investment than ProShares Trust. However, Rush Street Interactive is 1.36 times less risky than ProShares Trust. It trades about 0.23 of its potential returns per unit of risk. ProShares Trust is currently generating about 0.12 per unit of risk. If you would invest 1,072 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 379.00 from holding Rush Street Interactive or generate 35.35% 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. ProShares Trust
Performance |
| Timeline |
| Rush Street Interactive |
| ProShares Trust |
Rush Street and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and ProShares Trust
The main advantage of trading using opposite Rush Street and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, ProShares Trust 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 ProShares Trust will offset losses from the drop in ProShares Trust's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| ProShares Trust vs. Grayscale Bitcoin Trust | ProShares Trust vs. Grayscale Bitcoin Mini | ProShares Trust vs. First Trust SkyBridge |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |