Correlation Between Rush Street and Inrad Optics
Can any of the company-specific risk be diversified away by investing in both Rush Street and Inrad Optics 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 Inrad Optics 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 Inrad Optics, you can compare the effects of market volatilities on Rush Street and Inrad Optics 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 Inrad Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Inrad Optics.
Diversification Opportunities for Rush Street and Inrad Optics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Inrad is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Inrad Optics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inrad Optics 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 Inrad Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inrad Optics has no effect on the direction of Rush Street i.e., Rush Street and Inrad Optics go up and down completely randomly.
Pair Corralation between Rush Street and Inrad Optics
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.74 times more return on investment than Inrad Optics. However, Rush Street Interactive is 1.35 times less risky than Inrad Optics. It trades about 0.09 of its potential returns per unit of risk. Inrad Optics is currently generating about 0.0 per unit of risk. If you would invest 358.00 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 974.00 from holding Rush Street Interactive or generate 272.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.44% |
| Values | Daily Returns |
Rush Street Interactive vs. Inrad Optics
Performance |
| Timeline |
| Rush Street Interactive |
| Inrad Optics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rush Street and Inrad Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Inrad Optics
The main advantage of trading using opposite Rush Street and Inrad Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Inrad Optics 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 Inrad Optics will offset losses from the drop in Inrad Optics' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Inrad Optics vs. M tron Industries | Inrad Optics vs. Ieh Corp | Inrad Optics vs. Micropac Industries | Inrad Optics vs. Deswell Industries |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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