Correlation Between Roblox Corp and 00101JAG1

Can any of the company-specific risk be diversified away by investing in both Roblox Corp and 00101JAG1 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 00101JAG1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Roblox Corp and US00101JAG13, you can compare the effects of market volatilities on Roblox Corp and 00101JAG1 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 00101JAG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roblox Corp and 00101JAG1.

Diversification Opportunities for Roblox Corp and 00101JAG1

-0.55

Correlation Coefficient

Roblox Corp  00101JAG1

Excellent diversification

The 3 months correlation between Roblox and 00101JAG1 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Roblox Corp and US00101JAG13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US00101JAG13 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 00101JAG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US00101JAG13 has no effect on the direction of Roblox Corp i.e., Roblox Corp and 00101JAG1 go up and down completely randomly.

Pair Corralation between Roblox Corp and 00101JAG1

Given the investment horizon of 90 days Roblox Corp is expected to generate 0.92 times more return on investment than 00101JAG1. However, Roblox Corp is 1.09 times less risky than 00101JAG1. It trades about 0.22 of its potential returns per unit of risk. US00101JAG13 is currently generating about 0.13 per unit of risk. If you would invest  8,116  in Roblox Corp on May 21, 2025 and sell it today you would earn a total of  3,879  from holding Roblox Corp or generate 47.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	31.15%
Values	Daily Returns

Roblox Corp  vs.  US00101JAG13

Roblox Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Roblox Corp are ranked lower than 17 (%) 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.

US00101JAG13

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in US00101JAG13 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 00101JAG1 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Roblox Corp and 00101JAG1

The main advantage of trading using opposite Roblox Corp and 00101JAG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roblox Corp position performs unexpectedly, 00101JAG1 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 00101JAG1 will offset losses from the drop in 00101JAG1's long position.

The idea behind Roblox Corp and US00101JAG13 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.