Correlation Between Rush Street and EXACT Sciences
Can any of the company-specific risk be diversified away by investing in both Rush Street and EXACT Sciences 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 EXACT Sciences 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 EXACT Sciences, you can compare the effects of market volatilities on Rush Street and EXACT Sciences 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 EXACT Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and EXACT Sciences.
Diversification Opportunities for Rush Street and EXACT Sciences
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and EXACT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences 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 EXACT Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXACT Sciences has no effect on the direction of Rush Street i.e., Rush Street and EXACT Sciences go up and down completely randomly.
Pair Corralation between Rush Street and EXACT Sciences
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.66 times more return on investment than EXACT Sciences. However, Rush Street Interactive is 1.51 times less risky than EXACT Sciences. It trades about 0.37 of its potential returns per unit of risk. EXACT Sciences is currently generating about -0.15 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 340.00 from holding Rush Street Interactive or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. EXACT Sciences
Performance |
| Timeline |
| Rush Street Interactive |
| EXACT Sciences |
Rush Street and EXACT Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and EXACT Sciences
The main advantage of trading using opposite Rush Street and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, EXACT Sciences 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 EXACT Sciences will offset losses from the drop in EXACT Sciences' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| EXACT Sciences vs. Eliem Therapeutics | EXACT Sciences vs. HCW Biologics | EXACT Sciences vs. Scpharmaceuticals | EXACT Sciences vs. Milestone Pharmaceuticals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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