Correlation Between IShares ESG and Roundhill Acquirers

Can any of the company-specific risk be diversified away by investing in both IShares ESG and Roundhill Acquirers 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 ESG and Roundhill Acquirers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares ESG Aware and Roundhill Acquirers Deep, you can compare the effects of market volatilities on IShares ESG and Roundhill Acquirers 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 ESG with a short position of Roundhill Acquirers. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Roundhill Acquirers.

Diversification Opportunities for IShares ESG and Roundhill Acquirers

0.94

Correlation Coefficient

IShares ESG  Roundhill Acquirers

Almost no diversification

The 3 months correlation between IShares and Roundhill is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware and Roundhill Acquirers Deep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Acquirers Deep and IShares ESG 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 ESG Aware are associated (or correlated) with Roundhill Acquirers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Acquirers Deep has no effect on the direction of IShares ESG i.e., IShares ESG and Roundhill Acquirers go up and down completely randomly.

Pair Corralation between IShares ESG and Roundhill Acquirers

Given the investment horizon of 90 days iShares ESG Aware is expected to generate 0.57 times more return on investment than Roundhill Acquirers. However, iShares ESG Aware is 1.75 times less risky than Roundhill Acquirers. It trades about 0.24 of its potential returns per unit of risk. Roundhill Acquirers Deep is currently generating about 0.11 per unit of risk. If you would invest  12,164  in iShares ESG Aware on May 6, 2025 and sell it today you would earn a total of  1,424  from holding iShares ESG Aware or generate 11.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

iShares ESG Aware  vs.  Roundhill Acquirers Deep

iShares ESG Aware

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares ESG Aware are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, IShares ESG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Roundhill Acquirers Deep

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roundhill Acquirers Deep are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Roundhill Acquirers may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with IShares ESG and Roundhill Acquirers

The main advantage of trading using opposite IShares ESG and Roundhill Acquirers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG position performs unexpectedly, Roundhill Acquirers 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 Acquirers will offset losses from the drop in Roundhill Acquirers' long position.

The idea behind iShares ESG Aware and Roundhill Acquirers Deep pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.