Correlation Between Rush Street and Simon Property
Can any of the company-specific risk be diversified away by investing in both Rush Street and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on Rush Street and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Simon Property.
Diversification Opportunities for Rush Street and Simon Property
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rush and Simon is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Rush Street i.e., Rush Street and Simon Property go up and down completely randomly.
Pair Corralation between Rush Street and Simon Property
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 5.61 times more return on investment than Simon Property. However, Rush Street is 5.61 times more volatile than Simon Property Group. It trades about 0.35 of its potential returns per unit of risk. Simon Property Group is currently generating about -0.13 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Simon Property Group
Performance |
| Timeline |
| Rush Street Interactive |
| Simon Property Group |
Rush Street and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Simon Property
The main advantage of trading using opposite Rush Street and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Simon Property vs. Saul Centers | Simon Property vs. Kimco Realty | Simon Property vs. Wheeler Real Estate | Simon Property vs. Macerich Company |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |