Correlation Between IShares MSCI and Roundhill Acquirers
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Roundhill Acquirers 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 IShares MSCI and Roundhill Acquirers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI EAFE and Roundhill Acquirers Deep, you can compare the effects of market volatilities on IShares MSCI and Roundhill Acquirers 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 IShares MSCI with a short position of Roundhill Acquirers. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Roundhill Acquirers.
Diversification Opportunities for IShares MSCI and Roundhill Acquirers
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Roundhill is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI EAFE and Roundhill Acquirers Deep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Acquirers Deep and IShares MSCI 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 iShares MSCI EAFE are associated (or correlated) with Roundhill Acquirers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Acquirers Deep has no effect on the direction of IShares MSCI i.e., IShares MSCI and Roundhill Acquirers go up and down completely randomly.
Pair Corralation between IShares MSCI and Roundhill Acquirers
Considering the 90-day investment horizon iShares MSCI EAFE is expected to under-perform the Roundhill Acquirers. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI EAFE is 1.81 times less risky than Roundhill Acquirers. The etf trades about -0.03 of its potential returns per unit of risk. The Roundhill Acquirers Deep is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,474 in Roundhill Acquirers Deep on September 3, 2024 and sell it today you would earn a total of 228.00 from holding Roundhill Acquirers Deep or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI EAFE vs. Roundhill Acquirers Deep
Performance |
| Timeline |
| iShares MSCI EAFE |
| Roundhill Acquirers Deep |
IShares MSCI and Roundhill Acquirers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Roundhill Acquirers
The main advantage of trading using opposite IShares MSCI and Roundhill Acquirers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Roundhill Acquirers 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 Acquirers will offset losses from the drop in Roundhill Acquirers' long position.| IShares MSCI vs. iShares MSCI Emerging | IShares MSCI vs. iShares Core Aggregate | IShares MSCI vs. iShares Russell 2000 | IShares MSCI vs. iShares MSCI Japan |
| Roundhill Acquirers vs. Roundhill BIG Tech | Roundhill Acquirers vs. FT Vest Equity | Roundhill Acquirers vs. Zillow Group Class | Roundhill Acquirers vs. Northern Lights |
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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