Correlation Between Rush Street and Wheat Futures
Can any of the company-specific risk be diversified away by investing in both Rush Street and Wheat Futures 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 Wheat Futures 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 Wheat Futures, you can compare the effects of market volatilities on Rush Street and Wheat Futures 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 Wheat Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Wheat Futures.
Diversification Opportunities for Rush Street and Wheat Futures
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rush and Wheat is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Wheat Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheat Futures 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 Wheat Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheat Futures has no effect on the direction of Rush Street i.e., Rush Street and Wheat Futures go up and down completely randomly.
Pair Corralation between Rush Street and Wheat Futures
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.69 times more return on investment than Wheat Futures. However, Rush Street is 2.69 times more volatile than Wheat Futures. It trades about 0.41 of its potential returns per unit of risk. Wheat Futures is currently generating about -0.03 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 29, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Wheat Futures
Performance |
| Timeline |
| Rush Street Interactive |
| Wheat Futures |
Rush Street and Wheat Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Wheat Futures
The main advantage of trading using opposite Rush Street and Wheat Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Wheat Futures 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 Wheat Futures will offset losses from the drop in Wheat Futures' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Wheat Futures vs. Nasdaq 100 | Wheat Futures vs. Oat Futures | Wheat Futures vs. Feeder Cattle Futures | Wheat Futures vs. Micro Silver Futures |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |