Correlation Between Rush Street and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Rush Street and Manning Napier 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 Manning Napier 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 Manning Napier Pro Blend, you can compare the effects of market volatilities on Rush Street and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Manning Napier.
Diversification Opportunities for Rush Street and Manning Napier
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Manning is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Manning Napier Pro Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Pro 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Pro has no effect on the direction of Rush Street i.e., Rush Street and Manning Napier go up and down completely randomly.
Pair Corralation between Rush Street and Manning Napier
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 8.63 times more return on investment than Manning Napier. However, Rush Street is 8.63 times more volatile than Manning Napier Pro Blend. It trades about 0.33 of its potential returns per unit of risk. Manning Napier Pro Blend is currently generating about -0.02 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Manning Napier Pro Blend
Performance |
| Timeline |
| Rush Street Interactive |
| Manning Napier Pro |
Rush Street and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Manning Napier
The main advantage of trading using opposite Rush Street and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Manning Napier vs. Pro Blend Moderate Term | Manning Napier vs. Pro Blend Maximum Term | Manning Napier vs. Pro Blend Servative Term | Manning Napier vs. Madison Mid Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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