Correlation Between Rush Street and IShares Oil
Can any of the company-specific risk be diversified away by investing in both Rush Street and IShares Oil 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 IShares Oil 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 iShares Oil Equipment, you can compare the effects of market volatilities on Rush Street and IShares Oil 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 IShares Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and IShares Oil.
Diversification Opportunities for Rush Street and IShares Oil
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and IShares is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and iShares Oil Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Oil Equipment 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 IShares Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Oil Equipment has no effect on the direction of Rush Street i.e., Rush Street and IShares Oil go up and down completely randomly.
Pair Corralation between Rush Street and IShares Oil
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.0 times more return on investment than IShares Oil. However, Rush Street is 2.0 times more volatile than iShares Oil Equipment. It trades about 0.09 of its potential returns per unit of risk. iShares Oil Equipment is currently generating about 0.01 per unit of risk. If you would invest 385.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 995.00 from holding Rush Street Interactive or generate 258.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. iShares Oil Equipment
Performance |
| Timeline |
| Rush Street Interactive |
| iShares Oil Equipment |
Rush Street and IShares Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and IShares Oil
The main advantage of trading using opposite Rush Street and IShares Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, IShares Oil 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 IShares Oil will offset losses from the drop in IShares Oil's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| IShares Oil vs. EA Series Trust | IShares Oil vs. EA Series Trust | IShares Oil vs. Rumble Inc | IShares Oil vs. EA Series Trust |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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