Correlation Between Roblox Corp and Corning Incorporated

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

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

Diversification Opportunities for Roblox Corp and Corning Incorporated

0.5

Correlation Coefficient

Roblox Corp  Corning Incorporated

Very weak diversification

The 3 months correlation between Roblox and Corning is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Roblox Corp i.e., Roblox Corp and Corning Incorporated go up and down completely randomly.

Pair Corralation between Roblox Corp and Corning Incorporated

Given the investment horizon of 90 days Roblox Corp is expected to generate 6.15 times less return on investment than Corning Incorporated. In addition to that, Roblox Corp is 1.99 times more volatile than Corning Incorporated. It trades about 0.03 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.36 per unit of volatility. If you would invest  6,236  in Corning Incorporated on July 30, 2025 and sell it today you would earn a total of  2,701  from holding Corning Incorporated or generate 43.31% 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.  Corning Incorporated

Roblox Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Roblox Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Corning Incorporated

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Corning Incorporated are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Corning Incorporated showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Roblox Corp and Corning Incorporated

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

The idea behind Roblox Corp and Corning Incorporated 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.