Correlation Between Roku and Leet Technology
Can any of the company-specific risk be diversified away by investing in both Roku and Leet Technology 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 Roku and Leet Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and Leet Technology, you can compare the effects of market volatilities on Roku and Leet Technology 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 Roku with a short position of Leet Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Leet Technology.
Diversification Opportunities for Roku and Leet Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Roku and Leet is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Leet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leet Technology and Roku 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 Roku Inc are associated (or correlated) with Leet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leet Technology has no effect on the direction of Roku i.e., Roku and Leet Technology go up and down completely randomly.
Pair Corralation between Roku and Leet Technology
Given the investment horizon of 90 days Roku is expected to generate 611.28 times less return on investment than Leet Technology. But when comparing it to its historical volatility, Roku Inc is 20.1 times less risky than Leet Technology. It trades about 0.0 of its potential returns per unit of risk. Leet Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Leet Technology on November 4, 2024 and sell it today you would earn a total of 4.20 from holding Leet Technology or generate 1400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Roku Inc vs. Leet Technology
Performance |
| Timeline |
| Roku Inc |
| Leet Technology |
Roku and Leet Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and Leet Technology
The main advantage of trading using opposite Roku and Leet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Leet Technology 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 Leet Technology will offset losses from the drop in Leet Technology's long position.| Roku vs. Walt Disney | Roku vs. AMC Entertainment Holdings | Roku vs. Paramount Global Class | Roku vs. Warner Bros Discovery |
| Leet Technology vs. Pop Culture Group | Leet Technology vs. MultiMetaVerse Holdings Limited | Leet Technology vs. Sycamore Entmt Grp | Leet Technology vs. Lions Gate Entertainment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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