Correlation Between VanEck Video and Roundhill Sports
Can any of the company-specific risk be diversified away by investing in both VanEck Video and Roundhill Sports 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 VanEck Video and Roundhill Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Video Gaming and Roundhill Sports Betting, you can compare the effects of market volatilities on VanEck Video and Roundhill Sports 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 VanEck Video with a short position of Roundhill Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Video and Roundhill Sports.
Diversification Opportunities for VanEck Video and Roundhill Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VanEck and Roundhill is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Video Gaming and Roundhill Sports Betting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Sports Betting and VanEck Video 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 VanEck Video Gaming are associated (or correlated) with Roundhill Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Sports Betting has no effect on the direction of VanEck Video i.e., VanEck Video and Roundhill Sports go up and down completely randomly.
Pair Corralation between VanEck Video and Roundhill Sports
Given the investment horizon of 90 days VanEck Video Gaming is expected to generate 1.0 times more return on investment than Roundhill Sports. However, VanEck Video is 1.0 times more volatile than Roundhill Sports Betting. It trades about 0.1 of its potential returns per unit of risk. Roundhill Sports Betting is currently generating about 0.05 per unit of risk. If you would invest 4,439 in VanEck Video Gaming on August 30, 2024 and sell it today you would earn a total of 3,906 from holding VanEck Video Gaming or generate 87.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Video Gaming vs. Roundhill Sports Betting
Performance |
| Timeline |
| VanEck Video Gaming |
| Roundhill Sports Betting |
VanEck Video and Roundhill Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Video and Roundhill Sports
The main advantage of trading using opposite VanEck Video and Roundhill Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Video position performs unexpectedly, Roundhill Sports 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 Sports will offset losses from the drop in Roundhill Sports' long position.| VanEck Video vs. Roundhill Video Games | VanEck Video vs. Global X Video | VanEck Video vs. Amplify ETF Trust | VanEck Video vs. Global X Cloud |
| Roundhill Sports vs. Roundhill Video Games | Roundhill Sports vs. Gan | Roundhill Sports vs. VanEck Video Gaming | Roundhill Sports vs. VanEck Gaming ETF |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |