Correlation Between Rush Street and Victory Supermarket
Can any of the company-specific risk be diversified away by investing in both Rush Street and Victory Supermarket 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 Victory Supermarket 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 Victory Supermarket Chain, you can compare the effects of market volatilities on Rush Street and Victory Supermarket 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 Victory Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Victory Supermarket.
Diversification Opportunities for Rush Street and Victory Supermarket
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and Victory is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain 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 Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of Rush Street i.e., Rush Street and Victory Supermarket go up and down completely randomly.
Pair Corralation between Rush Street and Victory Supermarket
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.77 times more return on investment than Victory Supermarket. However, Rush Street is 1.77 times more volatile than Victory Supermarket Chain. It trades about 0.09 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.05 per unit of risk. If you would invest 377.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,044 from holding Rush Street Interactive or generate 276.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.57% |
| Values | Daily Returns |
Rush Street Interactive vs. Victory Supermarket Chain
Performance |
| Timeline |
| Rush Street Interactive |
| Victory Supermarket Chain |
Rush Street and Victory Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and Victory Supermarket
The main advantage of trading using opposite Rush Street and Victory Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Victory Supermarket 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 Victory Supermarket will offset losses from the drop in Victory Supermarket's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| Victory Supermarket vs. Neto ME Holdings | Victory Supermarket vs. Kerur Holdings | Victory Supermarket vs. Salomon A Angel | Victory Supermarket vs. Sano Brunos Enterprises |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |