Correlation Between Roblox Corp and Linkage Global

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

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

Diversification Opportunities for Roblox Corp and Linkage Global

0.86

Correlation Coefficient

Roblox Corp  Linkage Global

Very poor diversification

The 3 months correlation between Roblox and Linkage is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Linkage Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linkage Global Ordinary 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 Linkage Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linkage Global Ordinary has no effect on the direction of Roblox Corp i.e., Roblox Corp and Linkage Global go up and down completely randomly.

Pair Corralation between Roblox Corp and Linkage Global

Given the investment horizon of 90 days Roblox Corp is expected to generate 0.56 times more return on investment than Linkage Global. However, Roblox Corp is 1.8 times less risky than Linkage Global. It trades about 0.4 of its potential returns per unit of risk. Linkage Global Ordinary is currently generating about 0.17 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	Strong
Accuracy	100.0%
Values	Daily Returns

Roblox Corp  vs.  Linkage Global Ordinary

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.

Linkage Global Ordinary

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Linkage Global Ordinary are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Linkage Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Roblox Corp and Linkage Global

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

The idea behind Roblox Corp and Linkage Global Ordinary 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.