Correlation Between IShares Core and Roundhill Investments
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Roundhill Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Roundhill Investments, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Roundhill Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Roundhill Investments.
Diversification Opportunities for IShares Core and Roundhill Investments
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Roundhill is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Roundhill Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Investments and IShares Core 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 Core SP 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 IShares Core i.e., IShares Core and Roundhill Investments go up and down completely randomly.
Pair Corralation between IShares Core and Roundhill Investments
If you would invest 57,257 in iShares Core SP on September 3, 2024 and sell it today you would earn a total of 3,250 from holding iShares Core SP or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
iShares Core SP vs. Roundhill Investments
Performance |
| Timeline |
| iShares Core SP |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Core and Roundhill Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Roundhill Investments
The main advantage of trading using opposite IShares Core and Roundhill Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares SP 500 | IShares Core vs. iShares Russell 2000 |
| Roundhill Investments vs. Roundhill BIG Tech | Roundhill Investments vs. Invesco KBW Bank | Roundhill Investments vs. Virtus ETF Trust | Roundhill Investments vs. Rbb Fund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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