Correlation Between Rush Street and Patria Latin
Can any of the company-specific risk be diversified away by investing in both Rush Street and Patria Latin 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 Patria Latin 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 Patria Latin American, you can compare the effects of market volatilities on Rush Street and Patria Latin 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 Patria Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Patria Latin.
Diversification Opportunities for Rush Street and Patria Latin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Patria is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Patria Latin American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Latin American 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 Patria Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Latin American has no effect on the direction of Rush Street i.e., Rush Street and Patria Latin go up and down completely randomly.
Pair Corralation between Rush Street and Patria Latin
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 85.07 times more return on investment than Patria Latin. However, Rush Street is 85.07 times more volatile than Patria Latin American. It trades about 0.37 of its potential returns per unit of risk. Patria Latin American is currently generating about 0.17 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 381.00 from holding Rush Street Interactive or generate 36.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rush Street Interactive vs. Patria Latin American
Performance |
| Timeline |
| Rush Street Interactive |
| Patria Latin American |
Rush Street and Patria Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Patria Latin
The main advantage of trading using opposite Rush Street and Patria Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Patria Latin 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 Patria Latin will offset losses from the drop in Patria Latin's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |