Correlation Between Roundhill Magnificent and NuShares ETF
Can any of the company-specific risk be diversified away by investing in both Roundhill Magnificent and NuShares 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 Magnificent and NuShares ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Magnificent Seven and NuShares ETF Trust, you can compare the effects of market volatilities on Roundhill Magnificent and NuShares 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 Magnificent with a short position of NuShares ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Magnificent and NuShares ETF.
Diversification Opportunities for Roundhill Magnificent and NuShares ETF
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Roundhill and NuShares is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Magnificent Seven and NuShares ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuShares ETF Trust and Roundhill Magnificent 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 Magnificent Seven are associated (or correlated) with NuShares ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuShares ETF Trust has no effect on the direction of Roundhill Magnificent i.e., Roundhill Magnificent and NuShares ETF go up and down completely randomly.
Pair Corralation between Roundhill Magnificent and NuShares ETF
Given the investment horizon of 90 days Roundhill Magnificent Seven is expected to generate 8.56 times more return on investment than NuShares ETF. However, Roundhill Magnificent is 8.56 times more volatile than NuShares ETF Trust. It trades about 0.09 of its potential returns per unit of risk. NuShares ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 3,311 in Roundhill Magnificent Seven on September 7, 2025 and sell it today you would earn a total of 3,451 from holding Roundhill Magnificent Seven or generate 104.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 10.71% |
| Values | Daily Returns |
Roundhill Magnificent Seven vs. NuShares ETF Trust
Performance |
| Timeline |
| Roundhill Magnificent |
| NuShares ETF Trust |
Roundhill Magnificent and NuShares ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Magnificent and NuShares ETF
The main advantage of trading using opposite Roundhill Magnificent and NuShares ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Magnificent position performs unexpectedly, NuShares 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 NuShares ETF will offset losses from the drop in NuShares ETF's long position.| Roundhill Magnificent vs. NuShares ETF Trust | Roundhill Magnificent vs. VistaShares Artificial Intelligence | Roundhill Magnificent vs. FT Cboe Vest | Roundhill Magnificent vs. Robo Global Robotics |
| NuShares ETF vs. VistaShares Artificial Intelligence | NuShares ETF vs. FT Cboe Vest | NuShares ETF vs. Robo Global Robotics | NuShares ETF vs. Bitwise Funds Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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