Correlation Between Rush Street and Sun Life
Can any of the company-specific risk be diversified away by investing in both Rush Street and Sun Life 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 Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on Rush Street and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Sun Life.
Diversification Opportunities for Rush Street and Sun Life
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and Sun is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Rush Street i.e., Rush Street and Sun Life go up and down completely randomly.
Pair Corralation between Rush Street and Sun Life
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 5.8 times more return on investment than Sun Life. However, Rush Street is 5.8 times more volatile than Sun Life Financial. It trades about 0.35 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.08 per unit of risk. If you would invest 1,061 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 360.00 from holding Rush Street Interactive or generate 33.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rush Street Interactive vs. Sun Life Financial
Performance |
| Timeline |
| Rush Street Interactive |
| Sun Life Financial |
Rush Street and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Sun Life
The main advantage of trading using opposite Rush Street and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Sun Life vs. Mako Mining Corp | Sun Life vs. Ramp Metals | Sun Life vs. DRI Healthcare Trust | Sun Life vs. Bausch Health Companies |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |