Correlation Between Rush Street and TPG
Can any of the company-specific risk be diversified away by investing in both Rush Street and TPG 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 TPG 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 TPG Inc, you can compare the effects of market volatilities on Rush Street and TPG 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 TPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and TPG.
Diversification Opportunities for Rush Street and TPG
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and TPG is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and TPG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG Inc 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 TPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG Inc has no effect on the direction of Rush Street i.e., Rush Street and TPG go up and down completely randomly.
Pair Corralation between Rush Street and TPG
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.13 times more return on investment than TPG. However, Rush Street is 1.13 times more volatile than TPG Inc. It trades about 0.33 of its potential returns per unit of risk. TPG Inc is currently generating about 0.07 per unit of risk. If you would invest 1,040 in Rush Street Interactive on August 27, 2024 and sell it today you would earn a total of 292.00 from holding Rush Street Interactive or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. TPG Inc
Performance |
| Timeline |
| Rush Street Interactive |
| TPG Inc |
Rush Street and TPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and TPG
The main advantage of trading using opposite Rush Street and TPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, TPG 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 TPG will offset losses from the drop in TPG's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| TPG vs. Ares Management LP | TPG vs. Patria Investments | TPG vs. Apollo Global Management | TPG vs. Cion Investment Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |