Correlation Between Roundhill Investments and IShares Core
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and IShares Core 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 IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Investments and iShares Core Aggregate, you can compare the effects of market volatilities on Roundhill Investments and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and IShares Core.
Diversification Opportunities for Roundhill Investments and IShares Core
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roundhill and IShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and iShares Core Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Aggregate 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Aggregate has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and IShares Core go up and down completely randomly.
Pair Corralation between Roundhill Investments and IShares Core
If you would invest 9,069 in iShares Core Aggregate on September 12, 2024 and sell it today you would earn a total of 819.50 from holding iShares Core Aggregate or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Roundhill Investments vs. iShares Core Aggregate
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core Aggregate |
Roundhill Investments and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and IShares Core
The main advantage of trading using opposite Roundhill Investments and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Roundhill Investments vs. Vanguard Mid Cap Growth | Roundhill Investments vs. iShares Russell Mid Cap | Roundhill Investments vs. ARK Innovation ETF | Roundhill Investments vs. iShares SP Mid Cap |
| IShares Core vs. iShares MSCI EAFE | IShares Core vs. iShares iBoxx Investment | IShares Core vs. iShares TIPS Bond | IShares Core vs. iShares 1 3 Year |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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