Correlation Between Rush Street and Codere Online

Can any of the company-specific risk be diversified away by investing in both Rush Street and Codere Online 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 Codere Online 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 Codere Online Corp, you can compare the effects of market volatilities on Rush Street and Codere Online 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 Codere Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Street and Codere Online.

Diversification Opportunities for Rush Street and Codere Online

-0.23

Correlation Coefficient

Rush Street  Codere Online

Very good diversification

The 3 months correlation between Rush and Codere is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Codere Online Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Corp 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 Codere Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codere Online Corp has no effect on the direction of Rush Street i.e., Rush Street and Codere Online go up and down completely randomly.

Pair Corralation between Rush Street and Codere Online

Considering the 90-day investment horizon Rush Street Interactive is expected to under-perform the Codere Online. In addition to that, Rush Street is 1.4 times more volatile than Codere Online Corp. It trades about -0.06 of its total potential returns per unit of risk. Codere Online Corp is currently generating about 0.1 per unit of volatility. If you would invest  629.00  in Codere Online Corp on December 28, 2024 and sell it today you would earn a total of  101.00  from holding Codere Online Corp or generate 16.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Rush Street Interactive  vs.  Codere Online Corp

Rush Street Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rush Street Interactive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Codere Online Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Codere Online Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Codere Online displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rush Street and Codere Online

The main advantage of trading using opposite Rush Street and Codere Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Codere Online 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 Codere Online will offset losses from the drop in Codere Online's long position.

The idea behind Rush Street Interactive and Codere Online Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.