Correlation Between Rush Street and Cambria Trinity
Can any of the company-specific risk be diversified away by investing in both Rush Street and Cambria Trinity 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 Cambria Trinity 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 Cambria Trinity ETF, you can compare the effects of market volatilities on Rush Street and Cambria Trinity 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 Cambria Trinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Cambria Trinity.
Diversification Opportunities for Rush Street and Cambria Trinity
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Cambria is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Cambria Trinity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Trinity ETF 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 Cambria Trinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Trinity ETF has no effect on the direction of Rush Street i.e., Rush Street and Cambria Trinity go up and down completely randomly.
Pair Corralation between Rush Street and Cambria Trinity
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 7.89 times more return on investment than Cambria Trinity. However, Rush Street is 7.89 times more volatile than Cambria Trinity ETF. It trades about 0.35 of its potential returns per unit of risk. Cambria Trinity ETF is currently generating about 0.14 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. Cambria Trinity ETF
Performance |
| Timeline |
| Rush Street Interactive |
| Cambria Trinity ETF |
Rush Street and Cambria Trinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Cambria Trinity
The main advantage of trading using opposite Rush Street and Cambria Trinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Cambria Trinity 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 Cambria Trinity will offset losses from the drop in Cambria Trinity's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Cambria Trinity vs. Cambria Global Asset | Cambria Trinity vs. Cambria Global Momentum | Cambria Trinity vs. Cambria Emerging Shareholder | Cambria Trinity vs. Cambria Value and |
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 CEOs Directory module to screen CEOs from public companies around the world.
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