Correlation Between IShares MSCI and Roundhill Video
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Roundhill Video 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 IShares MSCI and Roundhill Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and Roundhill Video Games, you can compare the effects of market volatilities on IShares MSCI and Roundhill Video 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 IShares MSCI with a short position of Roundhill Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Roundhill Video.
Diversification Opportunities for IShares MSCI and Roundhill Video
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Roundhill is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and Roundhill Video Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Video Games and IShares MSCI 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 iShares MSCI China are associated (or correlated) with Roundhill Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Video Games has no effect on the direction of IShares MSCI i.e., IShares MSCI and Roundhill Video go up and down completely randomly.
Pair Corralation between IShares MSCI and Roundhill Video
Given the investment horizon of 90 days iShares MSCI China is expected to generate 1.24 times more return on investment than Roundhill Video. However, IShares MSCI is 1.24 times more volatile than Roundhill Video Games. It trades about 0.0 of its potential returns per unit of risk. Roundhill Video Games is currently generating about -0.14 per unit of risk. If you would invest 6,297 in iShares MSCI China on September 9, 2025 and sell it today you would lose (31.00) from holding iShares MSCI China or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI China vs. Roundhill Video Games
Performance |
| Timeline |
| iShares MSCI China |
| Roundhill Video Games |
IShares MSCI and Roundhill Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Roundhill Video
The main advantage of trading using opposite IShares MSCI and Roundhill Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Roundhill Video 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 Roundhill Video will offset losses from the drop in Roundhill Video's long position.| IShares MSCI vs. iShares MSCI South | IShares MSCI vs. iShares Global Infrastructure | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares Expanded Tech |
| Roundhill Video vs. Exchange Listed Funds | Roundhill Video vs. VanEck Gaming ETF | Roundhill Video vs. SoFi Next 500 | Roundhill Video vs. Invesco Exchange Traded |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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