Correlation Between Rush Street and Innovator Russell
Can any of the company-specific risk be diversified away by investing in both Rush Street and Innovator Russell 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 Innovator Russell 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 Innovator Russell 2000, you can compare the effects of market volatilities on Rush Street and Innovator Russell 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 Innovator Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Innovator Russell.
Diversification Opportunities for Rush Street and Innovator Russell
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Innovator is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Innovator Russell 2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Russell 2000 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 Innovator Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Russell 2000 has no effect on the direction of Rush Street i.e., Rush Street and Innovator Russell go up and down completely randomly.
Pair Corralation between Rush Street and Innovator Russell
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 5.39 times more return on investment than Innovator Russell. However, Rush Street is 5.39 times more volatile than Innovator Russell 2000. It trades about 0.33 of its potential returns per unit of risk. Innovator Russell 2000 is currently generating about 0.25 per unit of risk. If you would invest 1,032 in Rush Street Interactive on August 26, 2024 and sell it today you would earn a total of 300.00 from holding Rush Street Interactive or generate 29.07% 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. Innovator Russell 2000
Performance |
| Timeline |
| Rush Street Interactive |
| Innovator Russell 2000 |
Rush Street and Innovator Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Innovator Russell
The main advantage of trading using opposite Rush Street and Innovator Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Innovator Russell 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 Innovator Russell will offset losses from the drop in Innovator Russell's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Innovator Russell vs. FT Cboe Vest | Innovator Russell vs. Innovator SP 500 | Innovator Russell vs. FT Cboe Vest |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |