Correlation Between Rush Street and Third Coast
Can any of the company-specific risk be diversified away by investing in both Rush Street and Third Coast 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 Third Coast 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 Third Coast Bancshares, you can compare the effects of market volatilities on Rush Street and Third Coast 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 Third Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Third Coast.
Diversification Opportunities for Rush Street and Third Coast
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Third is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Third Coast Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Third Coast Bancshares 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 Third Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Third Coast Bancshares has no effect on the direction of Rush Street i.e., Rush Street and Third Coast go up and down completely randomly.
Pair Corralation between Rush Street and Third Coast
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.39 times more return on investment than Third Coast. However, Rush Street is 2.39 times more volatile than Third Coast Bancshares. It trades about 0.41 of its potential returns per unit of risk. Third Coast Bancshares is currently generating about 0.27 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 29, 2024 and sell it today you would earn a total of 411.00 from holding Rush Street Interactive or generate 39.52% 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. Third Coast Bancshares
Performance |
| Timeline |
| Rush Street Interactive |
| Third Coast Bancshares |
Rush Street and Third Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Third Coast
The main advantage of trading using opposite Rush Street and Third Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Third Coast 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 Third Coast will offset losses from the drop in Third Coast's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Third Coast vs. Byline Bancorp | Third Coast vs. Coastal Financial Corp | Third Coast vs. NBT Bancorp | Third Coast vs. Community West Bancshares |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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