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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and State is 0.42. 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 13.03 times more return on investment than State Street. However, Rush Street is 13.03 times more volatile than State Street Target. It trades about 0.34 of its potential returns per unit of risk. State Street Target is currently generating about 0.14 per unit of risk. If you would invest 1,076 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 345.00 from holding Rush Street Interactive or generate 32.06% 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. Ultramid Cap Profund Ultramid Cap | State Street vs. American Century Etf | State Street vs. Palm Valley Capital | State Street vs. Pace Smallmedium Value |
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
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |