Correlation Between Rush Street and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Rush Street and Integrated Micro 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 Integrated Micro 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 Integrated Micro Electronics, you can compare the effects of market volatilities on Rush Street and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Integrated Micro.
Diversification Opportunities for Rush Street and Integrated Micro
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and Integrated is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Rush Street i.e., Rush Street and Integrated Micro go up and down completely randomly.
Pair Corralation between Rush Street and Integrated Micro
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.13 times more return on investment than Integrated Micro. However, Rush Street is 1.13 times more volatile than Integrated Micro Electronics. It trades about 0.21 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.01 per unit of risk. If you would invest 924.00 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 408.00 from holding Rush Street Interactive or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Integrated Micro Electronics
Performance |
| Timeline |
| Rush Street Interactive |
| Integrated Micro Ele |
Rush Street and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Integrated Micro
The main advantage of trading using opposite Rush Street and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Integrated Micro vs. Security Bank Corp | Integrated Micro vs. STI Education Systems | Integrated Micro vs. Metropolitan Bank Trust | Integrated Micro vs. Semirara Mining Corp |
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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