Correlation Between Roblox Corp and Software Acquisition
Can any of the company-specific risk be diversified away by investing in both Roblox Corp and Software Acquisition 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 Software Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roblox Corp and Software Acquisition Group, you can compare the effects of market volatilities on Roblox Corp and Software Acquisition 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 Software Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roblox Corp and Software Acquisition.
Diversification Opportunities for Roblox Corp and Software Acquisition
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Roblox and Software is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Software Acquisition Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Software Acquisition 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 Software Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Software Acquisition has no effect on the direction of Roblox Corp i.e., Roblox Corp and Software Acquisition go up and down completely randomly.
Pair Corralation between Roblox Corp and Software Acquisition
Given the investment horizon of 90 days Roblox Corp is expected to generate 0.86 times more return on investment than Software Acquisition. However, Roblox Corp is 1.16 times less risky than Software Acquisition. It trades about 0.14 of its potential returns per unit of risk. Software Acquisition Group is currently generating about 0.11 per unit of risk. If you would invest 10,359 in Roblox Corp on June 3, 2025 and sell it today you would earn a total of 2,100 from holding Roblox Corp or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roblox Corp vs. Software Acquisition Group
Performance |
| Timeline |
| Roblox Corp |
| Software Acquisition |
Roblox Corp and Software Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roblox Corp and Software Acquisition
The main advantage of trading using opposite Roblox Corp and Software Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roblox Corp position performs unexpectedly, Software Acquisition 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 Software Acquisition will offset losses from the drop in Software Acquisition's long position.| Roblox Corp vs. Skillz Platform | Roblox Corp vs. Bilibili | Roblox Corp vs. Take Two Interactive Software | Roblox Corp vs. NetEase |
| Software Acquisition vs. Guangdong Investment Limited | Software Acquisition vs. Inhibrx Biosciences, | Software Acquisition vs. Canaf Investments | Software Acquisition vs. Cardinal Health |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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