Correlation Between Rush Street and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Rush Street and Martin Currie 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 Martin Currie 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 Martin Currie Sustainable, you can compare the effects of market volatilities on Rush Street and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Martin Currie.
Diversification Opportunities for Rush Street and Martin Currie
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Martin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Rush Street i.e., Rush Street and Martin Currie go up and down completely randomly.
Pair Corralation between Rush Street and Martin Currie
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.17 times more return on investment than Martin Currie. However, Rush Street is 3.17 times more volatile than Martin Currie Sustainable. It trades about 0.09 of its potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.01 per unit of risk. If you would invest 353.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 1,068 from holding Rush Street Interactive or generate 302.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Martin Currie Sustainable
Performance |
| Timeline |
| Rush Street Interactive |
| Martin Currie Sustainable |
Rush Street and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Martin Currie
The main advantage of trading using opposite Rush Street and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |