Correlation Between Rush Street and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Rush Street and Massmutual Select 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 Massmutual Select 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 Massmutual Select T, you can compare the effects of market volatilities on Rush Street and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Massmutual Select.
Diversification Opportunities for Rush Street and Massmutual Select
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Massmutual is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Rush Street i.e., Rush Street and Massmutual Select go up and down completely randomly.
Pair Corralation between Rush Street and Massmutual Select
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 9.33 times more return on investment than Massmutual Select. However, Rush Street is 9.33 times more volatile than Massmutual Select T. It trades about 0.14 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.13 per unit of risk. If you would invest 895.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 526.00 from holding Rush Street Interactive or generate 58.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Massmutual Select T
Performance |
| Timeline |
| Rush Street Interactive |
| Massmutual Select |
Rush Street and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Massmutual Select
The main advantage of trading using opposite Rush Street and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Massmutual Select vs. First Eagle Gold | Massmutual Select vs. Great West Goldman Sachs | Massmutual Select vs. Short Precious Metals | Massmutual Select vs. The Gold Bullion |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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