Correlation Between Roundhill Investments and IShares International
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and IShares International 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 International 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 International Dividend, you can compare the effects of market volatilities on Roundhill Investments and IShares International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and IShares International.
Diversification Opportunities for Roundhill Investments and IShares International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roundhill and IShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and iShares International Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares International has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and IShares International go up and down completely randomly.
Pair Corralation between Roundhill Investments and IShares International
If you would invest 7,114 in iShares International Dividend on September 2, 2024 and sell it today you would earn a total of 9.00 from holding iShares International Dividend or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Roundhill Investments vs. iShares International Dividend
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares International |
Roundhill Investments and IShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and IShares International
The main advantage of trading using opposite Roundhill Investments and IShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, IShares International 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 International will offset losses from the drop in IShares International's long position.| Roundhill Investments vs. SoFi Social 50 | Roundhill Investments vs. Global X Blockchain | Roundhill Investments vs. Tuttle Capital Short |
| IShares International vs. iShares MSCI Intl | IShares International vs. iShares MSCI Intl | IShares International vs. iShares MSCI Intl | IShares International vs. iShares Currency Hedged |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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