Correlation Between Rush Street and Quantex Fund

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

Diversification Opportunities for Rush Street and Quantex Fund

0.79

Correlation Coefficient

Rush Street  Quantex Fund

Poor diversification

The 3 months correlation between Rush and Quantex is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Rush Street Interactive and Quantex Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Retail 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 Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Retail has no effect on the direction of Rush Street i.e., Rush Street and Quantex Fund go up and down completely randomly.

Pair Corralation between Rush Street and Quantex Fund

Considering the 90-day investment horizon Rush Street Interactive is expected to generate 4.53 times more return on investment than Quantex Fund. However, Rush Street is 4.53 times more volatile than Quantex Fund Retail. It trades about 0.13 of its potential returns per unit of risk. Quantex Fund Retail is currently generating about 0.09 per unit of risk. If you would invest  304.00  in Rush Street Interactive on September 1, 2024 and sell it today you would earn a total of  1,138  from holding Rush Street Interactive or generate 374.34% return on investment over 90 days.

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

Rush Street Interactive  vs.  Quantex Fund Retail

Rush Street Interactive

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rush Street Interactive are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Rush Street demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Quantex Fund Retail

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantex Fund Retail are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Quantex Fund may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Rush Street and Quantex Fund

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

The idea behind Rush Street Interactive and Quantex Fund Retail 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.