Correlation Between Rush Street and First Republic
Can any of the company-specific risk be diversified away by investing in both Rush Street and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Rush Street and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and First Republic.
Diversification Opportunities for Rush Street and First Republic
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and First is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Rush Street i.e., Rush Street and First Republic go up and down completely randomly.
Pair Corralation between Rush Street and First Republic
If you would invest 1,040 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Rush Street Interactive vs. First Republic Bank
Performance |
| Timeline |
| Rush Street Interactive |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rush Street and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and First Republic
The main advantage of trading using opposite Rush Street and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| First Republic vs. AMCON Distributing | First Republic vs. Sun Country Airlines | First Republic vs. Village Super Market | First Republic vs. Alaska Air Group |
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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