Correlation Between Rush Street and 10 Year
Can any of the company-specific risk be diversified away by investing in both Rush Street and 10 Year 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 10 Year 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 10 Year T Note Futures, you can compare the effects of market volatilities on Rush Street and 10 Year 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 10 Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and 10 Year.
Diversification Opportunities for Rush Street and 10 Year
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and ZNUSD is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and 10 Year T Note Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10 Year T 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 10 Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10 Year T has no effect on the direction of Rush Street i.e., Rush Street and 10 Year go up and down completely randomly.
Pair Corralation between Rush Street and 10 Year
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 9.22 times more return on investment than 10 Year. However, Rush Street is 9.22 times more volatile than 10 Year T Note Futures. It trades about 0.15 of its potential returns per unit of risk. 10 Year T Note Futures is currently generating about 0.0 per unit of risk. If you would invest 425.00 in Rush Street Interactive on August 25, 2024 and sell it today you would earn a total of 907.00 from holding Rush Street Interactive or generate 213.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.28% |
| Values | Daily Returns |
Rush Street Interactive vs. 10 Year T Note Futures
Performance |
| Timeline |
| Rush Street Interactive |
| 10 Year T |
Rush Street and 10 Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Street and 10 Year
The main advantage of trading using opposite Rush Street and 10 Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, 10 Year 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 10 Year will offset losses from the drop in 10 Year's long position.| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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