Correlation Between Rush Street and Stock Yards
Can any of the company-specific risk be diversified away by investing in both Rush Street and Stock Yards 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 Stock Yards 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 Stock Yards Bancorp, you can compare the effects of market volatilities on Rush Street and Stock Yards 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 Stock Yards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Stock Yards.
Diversification Opportunities for Rush Street and Stock Yards
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Stock is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Stock Yards Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Yards Bancorp 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 Stock Yards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Yards Bancorp has no effect on the direction of Rush Street i.e., Rush Street and Stock Yards go up and down completely randomly.
Pair Corralation between Rush Street and Stock Yards
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.23 times more return on investment than Stock Yards. However, Rush Street is 1.23 times more volatile than Stock Yards Bancorp. It trades about 0.37 of its potential returns per unit of risk. Stock Yards Bancorp is currently generating about 0.23 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 28, 2024 and sell it today you would earn a total of 340.00 from holding Rush Street Interactive or generate 32.69% 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. Stock Yards Bancorp
Performance |
| Timeline |
| Rush Street Interactive |
| Stock Yards Bancorp |
Rush Street and Stock Yards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Stock Yards
The main advantage of trading using opposite Rush Street and Stock Yards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Stock Yards 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 Stock Yards will offset losses from the drop in Stock Yards' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Stock Yards vs. First National Corp | Stock Yards vs. Southern Missouri Bancorp | Stock Yards vs. Shore Bancshares | Stock Yards vs. First Capital |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |