Correlation Between Rush Street and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Rush Street and Flutter Entertainment 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 Flutter Entertainment 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 Flutter Entertainment plc, you can compare the effects of market volatilities on Rush Street and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Flutter Entertainment.
Diversification Opportunities for Rush Street and Flutter Entertainment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Flutter is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of Rush Street i.e., Rush Street and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Rush Street and Flutter Entertainment
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.73 times more return on investment than Flutter Entertainment. However, Rush Street is 1.73 times more volatile than Flutter Entertainment plc. It trades about 0.28 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.32 per unit of risk. If you would invest 1,074 in Rush Street Interactive on August 24, 2024 and sell it today you would earn a total of 274.00 from holding Rush Street Interactive or generate 25.51% 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. Flutter Entertainment plc
Performance |
| Timeline |
| Rush Street Interactive |
| Flutter Entertainment plc |
Rush Street and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Flutter Entertainment
The main advantage of trading using opposite Rush Street and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Flutter Entertainment vs. DraftKings | Flutter Entertainment vs. Codere Online Luxembourg | Flutter Entertainment vs. Gan | Flutter Entertainment vs. Rush Street Interactive |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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