Correlation Between Rush Street and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Rush Street and Putnam Global 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 Putnam Global 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 Putnam Global Income, you can compare the effects of market volatilities on Rush Street and Putnam Global 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Putnam Global.
Diversification Opportunities for Rush Street and Putnam Global
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Putnam is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Putnam Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Income 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Income has no effect on the direction of Rush Street i.e., Rush Street and Putnam Global go up and down completely randomly.
Pair Corralation between Rush Street and Putnam Global
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 13.38 times more return on investment than Putnam Global. However, Rush Street is 13.38 times more volatile than Putnam Global Income. It trades about 0.34 of its potential returns per unit of risk. Putnam Global Income is currently generating about 0.02 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 345.00 from holding Rush Street Interactive or generate 32.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Putnam Global Income
Performance |
| Timeline |
| Rush Street Interactive |
| Putnam Global Income |
Rush Street and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Putnam Global
The main advantage of trading using opposite Rush Street and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Putnam Global vs. Commonwealth Real Estate | Putnam Global vs. Tiaa Cref Real Estate | Putnam Global vs. Prudential Real Estate | Putnam Global vs. Us Real Estate |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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