Correlation Between Rush Street and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Rush Street and SPDR SP 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 SPDR SP 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 SPDR SP 600, you can compare the effects of market volatilities on Rush Street and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and SPDR SP.
Diversification Opportunities for Rush Street and SPDR SP
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and SPDR is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and SPDR SP 600 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP 600 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP 600 has no effect on the direction of Rush Street i.e., Rush Street and SPDR SP go up and down completely randomly.
Pair Corralation between Rush Street and SPDR SP
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.34 times more return on investment than SPDR SP. However, Rush Street is 2.34 times more volatile than SPDR SP 600. It trades about 0.29 of its potential returns per unit of risk. SPDR SP 600 is currently generating about 0.24 per unit of risk. If you would invest 1,058 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 274.00 from holding Rush Street Interactive or generate 25.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. SPDR SP 600
Performance |
| Timeline |
| Rush Street Interactive |
| SPDR SP 600 |
Rush Street and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and SPDR SP
The main advantage of trading using opposite Rush Street and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| SPDR SP vs. Invesco DWA Momentum | SPDR SP vs. Invesco DWA Developed | SPDR SP vs. Invesco DWA Emerging | SPDR SP vs. First Trust Small |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| 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 | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |