Correlation Between Rush Street and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Rush Street and Mfs Research 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 Mfs Research 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 Mfs Research Fund, you can compare the effects of market volatilities on Rush Street and Mfs Research 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 Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Mfs Research.
Diversification Opportunities for Rush Street and Mfs Research
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Mfs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Rush Street i.e., Rush Street and Mfs Research go up and down completely randomly.
Pair Corralation between Rush Street and Mfs Research
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.71 times more return on investment than Mfs Research. However, Rush Street is 4.71 times more volatile than Mfs Research Fund. It trades about 0.09 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.1 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Mfs Research Fund
Performance |
| Timeline |
| Rush Street Interactive |
| Mfs Research |
Rush Street and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Mfs Research
The main advantage of trading using opposite Rush Street and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Mfs Research vs. Mfs Growth Fund | Mfs Research vs. Massachusetts Investors Trust | Mfs Research vs. Mfs Total Return | Mfs Research vs. Massachusetts Investors Growth |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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