Correlation Between Rush Street and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Rush Street and Sterling Capital 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 Sterling Capital 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 Sterling Capital Stratton, you can compare the effects of market volatilities on Rush Street and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Sterling Capital.
Diversification Opportunities for Rush Street and Sterling Capital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Sterling is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Stratton has no effect on the direction of Rush Street i.e., Rush Street and Sterling Capital go up and down completely randomly.
Pair Corralation between Rush Street and Sterling Capital
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 3.59 times more return on investment than Sterling Capital. However, Rush Street is 3.59 times more volatile than Sterling Capital Stratton. It trades about 0.36 of its potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.2 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. Sterling Capital Stratton
Performance |
| Timeline |
| Rush Street Interactive |
| Sterling Capital Stratton |
Rush Street and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Sterling Capital
The main advantage of trading using opposite Rush Street and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Sterling Capital vs. Baird Strategic Municipal | Sterling Capital vs. The Hartford Municipal | Sterling Capital vs. Nebraska Municipal Fund | Sterling Capital vs. Counterpoint Tactical Municipal |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |