Correlation Between Rush Street and Picton Mahoney
Can any of the company-specific risk be diversified away by investing in both Rush Street and Picton Mahoney 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 Picton Mahoney 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 Picton Mahoney Fortified, you can compare the effects of market volatilities on Rush Street and Picton Mahoney 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 Picton Mahoney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Picton Mahoney.
Diversification Opportunities for Rush Street and Picton Mahoney
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rush and Picton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Picton Mahoney Fortified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picton Mahoney Fortified 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 Picton Mahoney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picton Mahoney Fortified has no effect on the direction of Rush Street i.e., Rush Street and Picton Mahoney go up and down completely randomly.
Pair Corralation between Rush Street and Picton Mahoney
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.03 times more return on investment than Picton Mahoney. However, Rush Street is 4.03 times more volatile than Picton Mahoney Fortified. It trades about 0.27 of its potential returns per unit of risk. Picton Mahoney Fortified is currently generating about 0.16 per unit of risk. If you would invest 911.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 540.00 from holding Rush Street Interactive or generate 59.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Rush Street Interactive vs. Picton Mahoney Fortified
Performance |
| Timeline |
| Rush Street Interactive |
| Picton Mahoney Fortified |
Rush Street and Picton Mahoney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Picton Mahoney
The main advantage of trading using opposite Rush Street and Picton Mahoney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Picton Mahoney 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 Picton Mahoney will offset losses from the drop in Picton Mahoney's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active | Picton Mahoney vs. Global X Active |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |