Correlation Between Roblox Corp and Blue Hat
Can any of the company-specific risk be diversified away by investing in both Roblox Corp and Blue Hat 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 Roblox Corp and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roblox Corp and Blue Hat Interactive, you can compare the effects of market volatilities on Roblox Corp and Blue Hat 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 Roblox Corp with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roblox Corp and Blue Hat.
Diversification Opportunities for Roblox Corp and Blue Hat
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roblox and Blue is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and Roblox Corp 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 Roblox Corp are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of Roblox Corp i.e., Roblox Corp and Blue Hat go up and down completely randomly.
Pair Corralation between Roblox Corp and Blue Hat
Given the investment horizon of 90 days Roblox Corp is expected to generate 0.5 times more return on investment than Blue Hat. However, Roblox Corp is 1.99 times less risky than Blue Hat. It trades about 0.04 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about 0.0 per unit of risk. If you would invest 3,399 in Roblox Corp on August 23, 2024 and sell it today you would earn a total of 1,753 from holding Roblox Corp or generate 51.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roblox Corp vs. Blue Hat Interactive
Performance |
| Timeline |
| Roblox Corp |
| Blue Hat Interactive |
Roblox Corp and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roblox Corp and Blue Hat
The main advantage of trading using opposite Roblox Corp and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roblox Corp position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.| Roblox Corp vs. Electronic Arts | Roblox Corp vs. Take Two Interactive Software | Roblox Corp vs. Nintendo Co ADR | Roblox Corp vs. NetEase |
| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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