Correlation Between Rush Street and Cullen Enhanced
Can any of the company-specific risk be diversified away by investing in both Rush Street and Cullen Enhanced 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 Cullen Enhanced 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 Cullen Enhanced Equity, you can compare the effects of market volatilities on Rush Street and Cullen Enhanced 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 Cullen Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Cullen Enhanced.
Diversification Opportunities for Rush Street and Cullen Enhanced
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and CULLEN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Cullen Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Enhanced Equity 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 Cullen Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Enhanced Equity has no effect on the direction of Rush Street i.e., Rush Street and Cullen Enhanced go up and down completely randomly.
Pair Corralation between Rush Street and Cullen Enhanced
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 6.05 times more return on investment than Cullen Enhanced. However, Rush Street is 6.05 times more volatile than Cullen Enhanced Equity. It trades about 0.2 of its potential returns per unit of risk. Cullen Enhanced Equity is currently generating about 0.07 per unit of risk. If you would invest 1,085 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 336.00 from holding Rush Street Interactive or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Cullen Enhanced Equity
Performance |
| Timeline |
| Rush Street Interactive |
| Cullen Enhanced Equity |
Rush Street and Cullen Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Cullen Enhanced
The main advantage of trading using opposite Rush Street and Cullen Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Cullen Enhanced 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 Cullen Enhanced will offset losses from the drop in Cullen Enhanced's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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