Correlation Between Rush Street and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Rush Street and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Rush Street and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Eagle Growth.
Diversification Opportunities for Rush Street and Eagle Growth
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Eagle is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Rush Street i.e., Rush Street and Eagle Growth go up and down completely randomly.
Pair Corralation between Rush Street and Eagle Growth
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 5.53 times more return on investment than Eagle Growth. However, Rush Street is 5.53 times more volatile than Eagle Growth Income. It trades about 0.13 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.11 per unit of risk. If you would invest 305.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,137 from holding Rush Street Interactive or generate 372.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Rush Street Interactive vs. Eagle Growth Income
Performance |
| Timeline |
| Rush Street Interactive |
| Eagle Growth Income |
Rush Street and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Eagle Growth
The main advantage of trading using opposite Rush Street and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Eagle Growth vs. California High Yield Municipal | Eagle Growth vs. Artisan High Income | Eagle Growth vs. Metropolitan West High | Eagle Growth vs. Pioneer High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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