Correlation Between Rush Street and YieldMax MSTR
Can any of the company-specific risk be diversified away by investing in both Rush Street and YieldMax MSTR 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 YieldMax MSTR 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 YieldMax MSTR Option, you can compare the effects of market volatilities on Rush Street and YieldMax MSTR 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 YieldMax MSTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and YieldMax MSTR.
Diversification Opportunities for Rush Street and YieldMax MSTR
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and YieldMax is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and YieldMax MSTR Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax MSTR Option 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 YieldMax MSTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax MSTR Option has no effect on the direction of Rush Street i.e., Rush Street and YieldMax MSTR go up and down completely randomly.
Pair Corralation between Rush Street and YieldMax MSTR
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.54 times more return on investment than YieldMax MSTR. However, Rush Street Interactive is 1.85 times less risky than YieldMax MSTR. It trades about 0.4 of its potential returns per unit of risk. YieldMax MSTR Option is currently generating about 0.14 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% 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. YieldMax MSTR Option
Performance |
| Timeline |
| Rush Street Interactive |
| YieldMax MSTR Option |
Rush Street and YieldMax MSTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and YieldMax MSTR
The main advantage of trading using opposite Rush Street and YieldMax MSTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, YieldMax MSTR 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 YieldMax MSTR will offset losses from the drop in YieldMax MSTR's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| YieldMax MSTR vs. Freedom Day Dividend | YieldMax MSTR vs. Franklin Templeton ETF | YieldMax MSTR vs. iShares MSCI China | YieldMax MSTR vs. Tidal Trust II |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |