Correlation Between Rush Street and TransAct Technologies
Can any of the company-specific risk be diversified away by investing in both Rush Street and TransAct Technologies 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 TransAct Technologies 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 TransAct Technologies Incorporated, you can compare the effects of market volatilities on Rush Street and TransAct Technologies 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 TransAct Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and TransAct Technologies.
Diversification Opportunities for Rush Street and TransAct Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and TransAct is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and TransAct Technologies Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAct Technologies 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 TransAct Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAct Technologies has no effect on the direction of Rush Street i.e., Rush Street and TransAct Technologies go up and down completely randomly.
Pair Corralation between Rush Street and TransAct Technologies
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.93 times more return on investment than TransAct Technologies. However, Rush Street is 1.93 times more volatile than TransAct Technologies Incorporated. It trades about 0.34 of its potential returns per unit of risk. TransAct Technologies Incorporated is currently generating about -0.04 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. TransAct Technologies Incorpor
Performance |
| Timeline |
| Rush Street Interactive |
| TransAct Technologies |
Rush Street and TransAct Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and TransAct Technologies
The main advantage of trading using opposite Rush Street and TransAct Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, TransAct Technologies 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 TransAct Technologies will offset losses from the drop in TransAct Technologies' long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| TransAct Technologies vs. RLJ Lodging Trust | TransAct Technologies vs. Aquagold International | TransAct Technologies vs. Stepstone Group | TransAct Technologies vs. Morningstar Unconstrained Allocation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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