Correlation Between Rush Street and IAMGold
Can any of the company-specific risk be diversified away by investing in both Rush Street and IAMGold 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 IAMGold 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 IAMGold, you can compare the effects of market volatilities on Rush Street and IAMGold 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 IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and IAMGold.
Diversification Opportunities for Rush Street and IAMGold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rush and IAMGold is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold 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 IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Rush Street i.e., Rush Street and IAMGold go up and down completely randomly.
Pair Corralation between Rush Street and IAMGold
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.93 times more return on investment than IAMGold. However, Rush Street Interactive is 1.08 times less risky than IAMGold. It trades about 0.16 of its potential returns per unit of risk. IAMGold is currently generating about 0.13 per unit of risk. If you would invest 521.00 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 859.00 from holding Rush Street Interactive or generate 164.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Rush Street Interactive vs. IAMGold
Performance |
| Timeline |
| Rush Street Interactive |
| IAMGold |
Rush Street and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and IAMGold
The main advantage of trading using opposite Rush Street and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New Gold |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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