Correlation Between Rush Street and Loft II
Can any of the company-specific risk be diversified away by investing in both Rush Street and Loft II 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 Loft II 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 Loft II Fundo, you can compare the effects of market volatilities on Rush Street and Loft II 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 Loft II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Loft II.
Diversification Opportunities for Rush Street and Loft II
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Loft is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Loft II Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loft II Fundo 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 Loft II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loft II Fundo has no effect on the direction of Rush Street i.e., Rush Street and Loft II go up and down completely randomly.
Pair Corralation between Rush Street and Loft II
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.78 times more return on investment than Loft II. However, Rush Street Interactive is 1.28 times less risky than Loft II. It trades about 0.34 of its potential returns per unit of risk. Loft II Fundo is currently generating about 0.08 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 345.00 from holding Rush Street Interactive or generate 32.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Rush Street Interactive vs. Loft II Fundo
Performance |
| Timeline |
| Rush Street Interactive |
| Loft II Fundo |
Rush Street and Loft II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Loft II
The main advantage of trading using opposite Rush Street and Loft II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Loft II 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 Loft II will offset losses from the drop in Loft II's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Loft II vs. Energisa SA | Loft II vs. BTG Pactual Logstica | Loft II vs. Plano Plano Desenvolvimento | Loft II vs. Companhia Habitasul de |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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