Correlation Between Juventus Football and Roku

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

By analyzing existing cross correlation between Juventus Football Club and Roku Inc, you can compare the effects of market volatilities on Juventus Football and Roku 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 Juventus Football with a short position of Roku. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juventus Football and Roku.

Diversification Opportunities for Juventus Football and Roku

0.65

Correlation Coefficient

Juventus Football  Roku

Poor diversification

The 3 months correlation between Juventus and Roku is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Juventus Football Club and Roku Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roku Inc and Juventus Football 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 Juventus Football Club are associated (or correlated) with Roku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roku Inc has no effect on the direction of Juventus Football i.e., Juventus Football and Roku go up and down completely randomly.

Pair Corralation between Juventus Football and Roku

Assuming the 90 days horizon Juventus Football Club is expected to generate 2.95 times more return on investment than Roku. However, Juventus Football is 2.95 times more volatile than Roku Inc. It trades about -0.02 of its potential returns per unit of risk. Roku Inc is currently generating about -0.06 per unit of risk. If you would invest  278.00  in Juventus Football Club on March 12, 2024 and sell it today you would lose (61.00) from holding Juventus Football Club or give up 21.94% of portfolio value over 90 days.

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

Juventus Football Club  vs.  Roku Inc

Juventus Football Club

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Juventus Football Club has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Roku Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Roku Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Juventus Football and Roku

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

The idea behind Juventus Football Club and Roku 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.