Correlation Between Rush Street and IShares Short
Can any of the company-specific risk be diversified away by investing in both Rush Street and IShares Short 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 IShares Short 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 iShares Short Term, you can compare the effects of market volatilities on Rush Street and IShares Short 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 IShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and IShares Short.
Diversification Opportunities for Rush Street and IShares Short
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rush and IShares is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and iShares Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Short Term 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 IShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Short Term has no effect on the direction of Rush Street i.e., Rush Street and IShares Short go up and down completely randomly.
Pair Corralation between Rush Street and IShares Short
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 15.79 times more return on investment than IShares Short. However, Rush Street is 15.79 times more volatile than iShares Short Term. It trades about 0.12 of its potential returns per unit of risk. iShares Short Term is currently generating about 0.11 per unit of risk. If you would invest 322.00 in Rush Street Interactive on August 30, 2024 and sell it today you would earn a total of 1,099 from holding Rush Street Interactive or generate 341.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.49% |
| Values | Daily Returns |
Rush Street Interactive vs. iShares Short Term
Performance |
| Timeline |
| Rush Street Interactive |
| iShares Short Term |
Rush Street and IShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and IShares Short
The main advantage of trading using opposite Rush Street and IShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, IShares Short 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 IShares Short will offset losses from the drop in IShares Short's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
| IShares Short vs. iShares Conservative Short | IShares Short vs. iShares Conservative Strategic | IShares Short vs. iShares Floating Rate | IShares Short vs. iShares High Quality |
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.
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