Correlation Between Rush Street and Performant Financial
Can any of the company-specific risk be diversified away by investing in both Rush Street and Performant Financial 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 Performant Financial 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 Performant Financial, you can compare the effects of market volatilities on Rush Street and Performant Financial 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 Performant Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Performant Financial.
Diversification Opportunities for Rush Street and Performant Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and Performant is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Performant Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Financial 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 Performant Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Financial has no effect on the direction of Rush Street i.e., Rush Street and Performant Financial go up and down completely randomly.
Pair Corralation between Rush Street and Performant Financial
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 0.83 times more return on investment than Performant Financial. However, Rush Street Interactive is 1.21 times less risky than Performant Financial. It trades about 0.33 of its potential returns per unit of risk. Performant Financial is currently generating about -0.18 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 292.00 from holding Rush Street Interactive or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Performant Financial
Performance |
| Timeline |
| Rush Street Interactive |
| Performant Financial |
Rush Street and Performant Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Performant Financial
The main advantage of trading using opposite Rush Street and Performant Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Performant Financial 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 Performant Financial will offset losses from the drop in Performant Financial's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Performant Financial vs. Network 1 Technologies | Performant Financial vs. Rentokil Initial PLC | Performant Financial vs. Wilhelmina | Performant Financial vs. Mader Group Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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