Correlation Between Rush Street and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Rush Street and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Small, you can compare the effects of market volatilities on Rush Street and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Goldman Sachs.
Diversification Opportunities for Rush Street and Goldman Sachs
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Goldman is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Small has no effect on the direction of Rush Street i.e., Rush Street and Goldman Sachs go up and down completely randomly.
Pair Corralation between Rush Street and Goldman Sachs
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.95 times more return on investment than Goldman Sachs. However, Rush Street is 2.95 times more volatile than Goldman Sachs Small. It trades about 0.09 of its potential returns per unit of risk. Goldman Sachs Small is currently generating about 0.06 per unit of risk. If you would invest 364.00 in Rush Street Interactive on August 26, 2024 and sell it today you would earn a total of 968.00 from holding Rush Street Interactive or generate 265.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Goldman Sachs Small
Performance |
| Timeline |
| Rush Street Interactive |
| Goldman Sachs Small |
Rush Street and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Goldman Sachs
The main advantage of trading using opposite Rush Street and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |