Correlation Between Roundhill Investments and IShares Treasury
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and IShares Treasury 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 Treasury 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 Treasury Bond, you can compare the effects of market volatilities on Roundhill Investments and IShares Treasury 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 Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and IShares Treasury.
Diversification Opportunities for Roundhill Investments and IShares Treasury
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roundhill and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and iShares Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Treasury Bond 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 Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Treasury Bond has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and IShares Treasury go up and down completely randomly.
Pair Corralation between Roundhill Investments and IShares Treasury
If you would invest 2,231 in iShares Treasury Bond on November 9, 2024 and sell it today you would earn a total of 35.00 from holding iShares Treasury Bond or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Roundhill Investments vs. iShares Treasury Bond
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| iShares Treasury Bond |
Roundhill Investments and IShares Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and IShares Treasury
The main advantage of trading using opposite Roundhill Investments and IShares Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, IShares Treasury 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 Treasury will offset losses from the drop in IShares Treasury's long position.| Roundhill Investments vs. SoFi Social 50 | Roundhill Investments vs. Global X Blockchain | Roundhill Investments vs. Tuttle Capital Short | Roundhill Investments vs. Aquagold International |
| IShares Treasury vs. iShares MBS ETF | IShares Treasury vs. iShares Core Total | IShares Treasury vs. iShares 3 7 Year | IShares Treasury vs. iShares 10 20 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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