Correlation Between Rush Street and IES Holdings
Can any of the company-specific risk be diversified away by investing in both Rush Street and IES Holdings 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 IES Holdings 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 IES Holdings, you can compare the effects of market volatilities on Rush Street and IES Holdings 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 IES Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and IES Holdings.
Diversification Opportunities for Rush Street and IES Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and IES is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and IES Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IES Holdings 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 IES Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IES Holdings has no effect on the direction of Rush Street i.e., Rush Street and IES Holdings go up and down completely randomly.
Pair Corralation between Rush Street and IES Holdings
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.53 times more return on investment than IES Holdings. However, Rush Street is 1.53 times more volatile than IES Holdings. It trades about 0.12 of its potential returns per unit of risk. IES Holdings is currently generating about 0.08 per unit of risk. If you would invest 880.00 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 452.00 from holding Rush Street Interactive or generate 51.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.59% |
| Values | Daily Returns |
Rush Street Interactive vs. IES Holdings
Performance |
| Timeline |
| Rush Street Interactive |
| IES Holdings |
Rush Street and IES Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and IES Holdings
The main advantage of trading using opposite Rush Street and IES Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, IES Holdings 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 IES Holdings will offset losses from the drop in IES Holdings' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| IES Holdings vs. Israel Canada | IES Holdings vs. Azrieli Group | IES Holdings vs. Delek Group | IES Holdings vs. Shikun Binui |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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