Correlation Between Roundhill Investments and NEOS ETF
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and NEOS ETF 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 NEOS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Investments and NEOS ETF Trust, you can compare the effects of market volatilities on Roundhill Investments and NEOS ETF 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 NEOS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and NEOS ETF.
Diversification Opportunities for Roundhill Investments and NEOS ETF
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Roundhill and NEOS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and NEOS ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEOS ETF Trust 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 NEOS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEOS ETF Trust has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and NEOS ETF go up and down completely randomly.
Pair Corralation between Roundhill Investments and NEOS ETF
If you would invest 2,196 in NEOS ETF Trust on August 27, 2024 and sell it today you would earn a total of 398.00 from holding NEOS ETF Trust or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.53% |
| Values | Daily Returns |
Roundhill Investments vs. NEOS ETF Trust
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NEOS ETF Trust |
Roundhill Investments and NEOS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and NEOS ETF
The main advantage of trading using opposite Roundhill Investments and NEOS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, NEOS ETF 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 NEOS ETF will offset losses from the drop in NEOS ETF's long position.| Roundhill Investments vs. SoFi Social 50 | Roundhill Investments vs. Global X Blockchain | Roundhill Investments vs. Tuttle Capital Short |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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