Correlation Between Global X and Roundhill Investments
Can any of the company-specific risk be diversified away by investing in both Global X and Roundhill Investments 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 Global X and Roundhill Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Blockchain and Roundhill Investments, you can compare the effects of market volatilities on Global X and Roundhill Investments 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 Global X with a short position of Roundhill Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Roundhill Investments.
Diversification Opportunities for Global X and Roundhill Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Roundhill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and Roundhill Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Investments and Global X 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 Global X Blockchain are associated (or correlated) with Roundhill Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Investments has no effect on the direction of Global X i.e., Global X and Roundhill Investments go up and down completely randomly.
Pair Corralation between Global X and Roundhill Investments
If you would invest (100.00) in Roundhill Investments on December 25, 2024 and sell it today you would earn a total of 100.00 from holding Roundhill Investments or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X Blockchain vs. Roundhill Investments
Performance |
| Timeline |
| Global X Blockchain |
| Roundhill Investments |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Global X and Roundhill Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Roundhill Investments
The main advantage of trading using opposite Global X and Roundhill Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Roundhill Investments 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 Roundhill Investments will offset losses from the drop in Roundhill Investments' long position.| Global X vs. VanEck Digital Transformation | Global X vs. Bitwise Crypto Industry | Global X vs. First Trust Indxx | Global X vs. First Trust SkyBridge |
| Roundhill Investments vs. SoFi Social 50 | Roundhill Investments vs. Global X Blockchain | Roundhill Investments vs. Tuttle Capital Short |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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