Correlation Between Rush Street and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Rush Street and SPDR SP 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 SPDR SP 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 SPDR SP Retail, you can compare the effects of market volatilities on Rush Street and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and SPDR SP.
Diversification Opportunities for Rush Street and SPDR SP
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rush and SPDR is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and SPDR SP Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Retail 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Retail has no effect on the direction of Rush Street i.e., Rush Street and SPDR SP go up and down completely randomly.
Pair Corralation between Rush Street and SPDR SP
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 2.8 times more return on investment than SPDR SP. However, Rush Street is 2.8 times more volatile than SPDR SP Retail. It trades about 0.13 of its potential returns per unit of risk. SPDR SP Retail is currently generating about 0.07 per unit of risk. If you would invest 305.00 in Rush Street Interactive on August 31, 2024 and sell it today you would earn a total of 1,137 from holding Rush Street Interactive or generate 372.79% 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. SPDR SP Retail
Performance |
| Timeline |
| Rush Street Interactive |
| SPDR SP Retail |
Rush Street and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and SPDR SP
The main advantage of trading using opposite Rush Street and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| SPDR SP vs. SPDR SP Homebuilders | SPDR SP vs. Consumer Discretionary Select | SPDR SP vs. SPDR SP Metals | SPDR SP vs. Industrial Select Sector |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |