Correlation Between Rush Street and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Rush Street and Mairs Power 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 Mairs Power 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 Mairs Power Growth, you can compare the effects of market volatilities on Rush Street and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Mairs Power.
Diversification Opportunities for Rush Street and Mairs Power
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Mairs is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Mairs Power Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Growth 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Growth has no effect on the direction of Rush Street i.e., Rush Street and Mairs Power go up and down completely randomly.
Pair Corralation between Rush Street and Mairs Power
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.68 times more return on investment than Mairs Power. However, Rush Street is 4.68 times more volatile than Mairs Power Growth. It trades about 0.12 of its potential returns per unit of risk. Mairs Power Growth is currently generating about 0.1 per unit of risk. If you would invest 371.00 in Rush Street Interactive on August 26, 2024 and sell it today you would earn a total of 961.00 from holding Rush Street Interactive or generate 259.03% 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. Mairs Power Growth
Performance |
| Timeline |
| Rush Street Interactive |
| Mairs Power Growth |
Rush Street and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Mairs Power
The main advantage of trading using opposite Rush Street and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
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.
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