Correlation Between Rush Street and CI MidCap
Can any of the company-specific risk be diversified away by investing in both Rush Street and CI MidCap 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 CI MidCap 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 CI MidCap Dividend, you can compare the effects of market volatilities on Rush Street and CI MidCap 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 CI MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and CI MidCap.
Diversification Opportunities for Rush Street and CI MidCap
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and UMI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 CI MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of Rush Street i.e., Rush Street and CI MidCap go up and down completely randomly.
Pair Corralation between Rush Street and CI MidCap
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.06 times more return on investment than CI MidCap. However, Rush Street is 2.06 times more volatile than CI MidCap Dividend. It trades about 0.08 of its potential returns per unit of risk. CI MidCap Dividend is currently generating about -0.24 per unit of risk. If you would invest 996.00 in Rush Street Interactive on January 9, 2025 and sell it today you would earn a total of 57.00 from holding Rush Street Interactive or generate 5.72% 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. CI MidCap Dividend
Performance |
| Timeline |
| Rush Street Interactive |
| CI MidCap Dividend |
Rush Street and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and CI MidCap
The main advantage of trading using opposite Rush Street and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, CI MidCap 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 CI MidCap will offset losses from the drop in CI MidCap's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| CI MidCap vs. iShares SPTSX Small | CI MidCap vs. iShares Canadian Value | CI MidCap vs. iShares Canadian Growth | CI MidCap vs. iShares SPTSX Completion |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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