Correlation Between Rush Street and Flutter Entertainment

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

Diversification Opportunities for Rush Street and Flutter Entertainment

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Rush and Flutter is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of Rush Street i.e., Rush Street and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Rush Street and Flutter Entertainment

If you would invest  1,126  in Rush Street Interactive on September 19, 2024 and sell it today you would earn a total of  250.00  from holding Rush Street Interactive or generate 22.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Rush Street Interactive  vs.  Flutter Entertainment PLC

 Performance 
       Timeline  
Rush Street Interactive 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Rush Street Interactive are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Rush Street demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Flutter Entertainment PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Flutter Entertainment PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Flutter Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rush Street and Flutter Entertainment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rush Street and Flutter Entertainment

The main advantage of trading using opposite Rush Street and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Street position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.
The idea behind Rush Street Interactive and Flutter Entertainment PLC 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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