Correlation Between Rush Street and Irish Residential
Can any of the company-specific risk be diversified away by investing in both Rush Street and Irish Residential 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 Irish Residential 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 Irish Residential Properties, you can compare the effects of market volatilities on Rush Street and Irish Residential 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 Irish Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Irish Residential.
Diversification Opportunities for Rush Street and Irish Residential
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Irish is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Irish Residential Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Irish Residential 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 Irish Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Irish Residential has no effect on the direction of Rush Street i.e., Rush Street and Irish Residential go up and down completely randomly.
Pair Corralation between Rush Street and Irish Residential
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.98 times more return on investment than Irish Residential. However, Rush Street is 1.98 times more volatile than Irish Residential Properties. It trades about 0.41 of its potential returns per unit of risk. Irish Residential Properties is currently generating about 0.01 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Irish Residential Properties
Performance |
| Timeline |
| Rush Street Interactive |
| Irish Residential |
Rush Street and Irish Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Irish Residential
The main advantage of trading using opposite Rush Street and Irish Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Irish Residential 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 Irish Residential will offset losses from the drop in Irish Residential's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Irish Residential vs. Dalata Hotel Group | Irish Residential vs. Bank of Ireland | Irish Residential vs. Kingspan Group plc | Irish Residential vs. Irish Continental Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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