Correlation Between Roblox Corp and Capcom

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

By analyzing existing cross correlation between Roblox Corp and Capcom Co, you can compare the effects of market volatilities on Roblox Corp and Capcom 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 Capcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roblox Corp and Capcom.

Diversification Opportunities for Roblox Corp and Capcom

0.61

Correlation Coefficient

Roblox Corp  Capcom

Poor diversification

The 3 months correlation between Roblox and Capcom is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Capcom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capcom 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 Capcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capcom has no effect on the direction of Roblox Corp i.e., Roblox Corp and Capcom go up and down completely randomly.

Pair Corralation between Roblox Corp and Capcom

Given the investment horizon of 90 days Roblox Corp is expected to generate 0.96 times more return on investment than Capcom. However, Roblox Corp is 1.05 times less risky than Capcom. It trades about 0.4 of its potential returns per unit of risk. Capcom Co is currently generating about 0.05 per unit of risk. If you would invest  6,900  in Roblox Corp on May 1, 2025 and sell it today you would earn a total of  4,933  from holding Roblox Corp or generate 71.49% return on investment over 90 days.

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

Roblox Corp  vs.  Capcom Co

Roblox Corp

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Roblox Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Capcom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Capcom Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Capcom may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Roblox Corp and Capcom

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

The idea behind Roblox Corp and Capcom Co 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.