Correlation Between Rush Street and International Game
Can any of the company-specific risk be diversified away by investing in both Rush Street and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on Rush Street and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and International Game.
Diversification Opportunities for Rush Street and International Game
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rush and International is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Rush Street i.e., Rush Street and International Game go up and down completely randomly.
Pair Corralation between Rush Street and International Game
Considering the 90-day investment horizon Rush Street Interactive is expected to generate 1.88 times more return on investment than International Game. However, Rush Street is 1.88 times more volatile than International Game Technology. It trades about 0.14 of its potential returns per unit of risk. International Game Technology is currently generating about -0.22 per unit of risk. If you would invest 1,036 in Rush Street Interactive on September 20, 2024 and sell it today you would earn a total of 277.00 from holding Rush Street Interactive or generate 26.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Rush Street Interactive vs. International Game Technology
Performance |
Timeline |
Rush Street Interactive |
International Game |
Rush Street and International Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rush Street and International Game
The main advantage of trading using opposite Rush Street and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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