Correlation Between Rush Street and State Street
Can any of the company-specific risk be diversified away by investing in both Rush Street and State Street 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 State Street 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 State Street Target, you can compare the effects of market volatilities on Rush Street and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and State Street.
Diversification Opportunities for Rush Street and State Street
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and State is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Rush Street i.e., Rush Street and State Street go up and down completely randomly.
Pair Corralation between Rush Street and State Street
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 6.92 times more return on investment than State Street. However, Rush Street is 6.92 times more volatile than State Street Target. It trades about 0.09 of its potential returns per unit of risk. State Street Target is currently generating about 0.09 per unit of risk. If you would invest 354.00 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 1,067 from holding Rush Street Interactive or generate 301.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. State Street Target
Performance |
| Timeline |
| Rush Street Interactive |
| State Street Target |
Rush Street and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and State Street
The main advantage of trading using opposite Rush Street and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| State Street vs. State Street Target | State Street vs. State Street Target | State Street vs. State Street Target | State Street vs. State Street Target |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |