Correlation Between Roundhill Investments and Global X
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and Global X 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 Roundhill Investments and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Investments and Global X Blockchain, you can compare the effects of market volatilities on Roundhill Investments and Global X 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 Roundhill Investments with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and Global X.
Diversification Opportunities for Roundhill Investments and Global X
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Roundhill and Global is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and Global X Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Blockchain and Roundhill Investments 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 Roundhill Investments are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Blockchain has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and Global X go up and down completely randomly.
Pair Corralation between Roundhill Investments and Global X
Given the investment horizon of 90 days Roundhill Investments is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Roundhill Investments is 3.66 times less risky than Global X. The etf trades about 0.0 of its potential returns per unit of risk. The Global X Blockchain is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,557 in Global X Blockchain on August 26, 2024 and sell it today you would earn a total of 5,357 from holding Global X Blockchain or generate 344.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.99% |
| Values | Daily Returns |
Roundhill Investments vs. Global X Blockchain
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X Blockchain |
Roundhill Investments and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and Global X
The main advantage of trading using opposite Roundhill Investments and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Roundhill Investments vs. Grayscale Bitcoin Trust | Roundhill Investments vs. Siren Nasdaq NexGen | Roundhill Investments vs. Grayscale Bitcoin Mini | Roundhill Investments vs. First Trust SkyBridge |
| Global X vs. UBS AG London | Global X vs. UBS AG London | Global X vs. ETRACS Quarterly Pay | Global X vs. ETRACS 2xMonthly Pay |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |