Correlation Between Rush Street and Xtrackers
Can any of the company-specific risk be diversified away by investing in both Rush Street and Xtrackers 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 Xtrackers 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 Xtrackers SP 500, you can compare the effects of market volatilities on Rush Street and Xtrackers 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 Xtrackers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Xtrackers.
Diversification Opportunities for Rush Street and Xtrackers
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Xtrackers is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Xtrackers SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers SP 500 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 Xtrackers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers SP 500 has no effect on the direction of Rush Street i.e., Rush Street and Xtrackers go up and down completely randomly.
Pair Corralation between Rush Street and Xtrackers
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.48 times more return on investment than Xtrackers. However, Rush Street is 4.48 times more volatile than Xtrackers SP 500. It trades about 0.09 of its potential returns per unit of risk. Xtrackers SP 500 is currently generating about 0.11 per unit of risk. If you would invest 353.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 1,068 from holding Rush Street Interactive or generate 302.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Xtrackers SP 500
Performance |
| Timeline |
| Rush Street Interactive |
| Xtrackers SP 500 |
Rush Street and Xtrackers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Xtrackers
The main advantage of trading using opposite Rush Street and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Xtrackers 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 Xtrackers will offset losses from the drop in Xtrackers' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Xtrackers vs. Xtrackers MSCI USA | Xtrackers vs. iShares ESG MSCI | Xtrackers vs. SPDR SP 500 | Xtrackers vs. iShares MSCI USA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |