Correlation Between Rush Street and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Rush Street and Franklin Credit 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 Franklin Credit 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 Franklin Credit Management, you can compare the effects of market volatilities on Rush Street and Franklin Credit 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 Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Franklin Credit.
Diversification Opportunities for Rush Street and Franklin Credit
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and Franklin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana 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 Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Rush Street i.e., Rush Street and Franklin Credit go up and down completely randomly.
Pair Corralation between Rush Street and Franklin Credit
Considering the 90-day investment horizon Rush Street is expected to generate 1.66 times less return on investment than Franklin Credit. But when comparing it to its historical volatility, Rush Street Interactive is 4.3 times less risky than Franklin Credit. It trades about 0.13 of its potential returns per unit of risk. Franklin Credit Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Franklin Credit Management on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Credit Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Rush Street Interactive vs. Franklin Credit Management
Performance |
| Timeline |
| Rush Street Interactive |
| Franklin Credit Mana |
Rush Street and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Franklin Credit
The main advantage of trading using opposite Rush Street and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Franklin Credit vs. Invesco High Income | Franklin Credit vs. Blackrock Muniholdings Ny | Franklin Credit vs. MFS Investment Grade | Franklin Credit vs. Federated Premier Municipal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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