Correlation Between Roblox Corp and Mixi

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

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

Diversification Opportunities for Roblox Corp and Mixi

-0.71

Correlation Coefficient

Roblox Corp  Mixi

Pay attention - limited upside

The 3 months correlation between Roblox and Mixi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc 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 Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of Roblox Corp i.e., Roblox Corp and Mixi go up and down completely randomly.

Pair Corralation between Roblox Corp and Mixi

Given the investment horizon of 90 days Roblox Corp is expected to generate 71.55 times more return on investment than Mixi. However, Roblox Corp is 71.55 times more volatile than Mixi Inc. It trades about 0.02 of its potential returns per unit of risk. Mixi Inc is currently generating about -0.14 per unit of risk. If you would invest  4,111  in Roblox Corp on July 14, 2024 and sell it today you would earn a total of  49.00  from holding Roblox Corp or generate 1.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	84.38%
Values	Daily Returns

Roblox Corp  vs.  Mixi Inc

Roblox Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 1 (%) 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.

Mixi Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mixi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Mixi is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Roblox Corp and Mixi

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

The idea behind Roblox Corp and Mixi Inc 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.