Correlation Between Rush Street and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Rush Street and IShares ESG 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 IShares ESG 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 iShares ESG Aware, you can compare the effects of market volatilities on Rush Street and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and IShares ESG.
Diversification Opportunities for Rush Street and IShares ESG
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and IShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Rush Street i.e., Rush Street and IShares ESG go up and down completely randomly.
Pair Corralation between Rush Street and IShares ESG
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.91 times more return on investment than IShares ESG. However, Rush Street is 3.91 times more volatile than iShares ESG Aware. It trades about 0.15 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.02 per unit of risk. If you would invest 585.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 747.00 from holding Rush Street Interactive or generate 127.69% 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. iShares ESG Aware
Performance |
| Timeline |
| Rush Street Interactive |
| iShares ESG Aware |
Rush Street and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and IShares ESG
The main advantage of trading using opposite Rush Street and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| IShares ESG vs. Dimensional Core Equity | IShares ESG vs. Dimensional Emerging Core | IShares ESG vs. Dimensional Targeted Value | IShares ESG vs. Dimensional Small Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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