Correlation Between Rush Street and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both Rush Street and Kinetik Holdings 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 Kinetik Holdings 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 Kinetik Holdings, you can compare the effects of market volatilities on Rush Street and Kinetik Holdings 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 Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Kinetik Holdings.
Diversification Opportunities for Rush Street and Kinetik Holdings
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Kinetik is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings 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 Kinetik Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetik Holdings has no effect on the direction of Rush Street i.e., Rush Street and Kinetik Holdings go up and down completely randomly.
Pair Corralation between Rush Street and Kinetik Holdings
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.51 times more return on investment than Kinetik Holdings. However, Rush Street is 1.51 times more volatile than Kinetik Holdings. It trades about 0.36 of its potential returns per unit of risk. Kinetik Holdings is currently generating about 0.36 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 340.00 from holding Rush Street Interactive or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Kinetik Holdings
Performance |
| Timeline |
| Rush Street Interactive |
| Kinetik Holdings |
Rush Street and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Kinetik Holdings
The main advantage of trading using opposite Rush Street and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Kinetik Holdings 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 Kinetik Holdings will offset losses from the drop in Kinetik Holdings' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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