Correlation Between Rush Street and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Rush Street and Mainstay Balanced 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 Mainstay Balanced 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 Mainstay Balanced Fund, you can compare the effects of market volatilities on Rush Street and Mainstay Balanced 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 Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Mainstay Balanced.
Diversification Opportunities for Rush Street and Mainstay Balanced
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Rush Street i.e., Rush Street and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Rush Street and Mainstay Balanced
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 7.32 times more return on investment than Mainstay Balanced. However, Rush Street is 7.32 times more volatile than Mainstay Balanced Fund. It trades about 0.33 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.18 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. Mainstay Balanced Fund
Performance |
| Timeline |
| Rush Street Interactive |
| Mainstay Balanced |
Rush Street and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Mainstay Balanced
The main advantage of trading using opposite Rush Street and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Mainstay Balanced 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 Mainstay Balanced will offset losses from the drop in Mainstay Balanced's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Mainstay Balanced vs. Arrow Managed Futures | Mainstay Balanced vs. Western Asset Municipal | Mainstay Balanced vs. Balanced Fund Investor | Mainstay Balanced vs. Aam Select Income |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |