Correlation Between Rush Street and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Rush Street and ProShares Ultra 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 ProShares Ultra 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 ProShares Ultra High, you can compare the effects of market volatilities on Rush Street and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and ProShares Ultra.
Diversification Opportunities for Rush Street and ProShares Ultra
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rush and ProShares is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and ProShares Ultra High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra High 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra High has no effect on the direction of Rush Street i.e., Rush Street and ProShares Ultra go up and down completely randomly.
Pair Corralation between Rush Street and ProShares Ultra
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 9.15 times more return on investment than ProShares Ultra. However, Rush Street is 9.15 times more volatile than ProShares Ultra High. It trades about 0.35 of its potential returns per unit of risk. ProShares Ultra High is currently generating about 0.23 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 366.00 from holding Rush Street Interactive or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rush Street Interactive vs. ProShares Ultra High
Performance |
| Timeline |
| Rush Street Interactive |
| ProShares Ultra High |
Rush Street and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and ProShares Ultra
The main advantage of trading using opposite Rush Street and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| ProShares Ultra vs. ProShares Ultra FTSE | ProShares Ultra vs. ProShares Ultra MSCI | ProShares Ultra vs. ProShares Ultra 20 | ProShares Ultra vs. ProShares Ultra MSCI |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges |