Correlation Between Rush Street and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Rush Street and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Rush Street and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Strategic Asset.
Diversification Opportunities for Rush Street and Strategic Asset
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rush and Strategic is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Rush Street i.e., Rush Street and Strategic Asset go up and down completely randomly.
Pair Corralation between Rush Street and Strategic Asset
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 14.37 times more return on investment than Strategic Asset. However, Rush Street is 14.37 times more volatile than Strategic Asset Management. It trades about 0.36 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.32 per unit of risk. If you would invest 1,082 in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rush Street Interactive vs. Strategic Asset Management
Performance |
| Timeline |
| Rush Street Interactive |
| Strategic Asset Mana |
Rush Street and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Strategic Asset
The main advantage of trading using opposite Rush Street and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Rush Street vs. Yum Brands | Rush Street vs. The Wendys Co | Rush Street vs. Wingstop | Rush Street vs. Shake Shack |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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