Correlation Between Aston Martin and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both Aston Martin and Bondbloxx ETF 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 Aston Martin and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Martin Lagonda and Bondbloxx ETF Trust, you can compare the effects of market volatilities on Aston Martin and Bondbloxx ETF 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 Aston Martin with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and Bondbloxx ETF.
Diversification Opportunities for Aston Martin and Bondbloxx ETF
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aston and Bondbloxx is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust and Aston Martin 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 Aston Martin Lagonda are associated (or correlated) with Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Aston Martin i.e., Aston Martin and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between Aston Martin and Bondbloxx ETF
Assuming the 90 days horizon Aston Martin Lagonda is expected to generate 27.13 times more return on investment than Bondbloxx ETF. However, Aston Martin is 27.13 times more volatile than Bondbloxx ETF Trust. It trades about 0.01 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.26 per unit of risk. If you would invest 129.00 in Aston Martin Lagonda on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Aston Martin Lagonda or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aston Martin Lagonda vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| Aston Martin Lagonda |
| Bondbloxx ETF Trust |
Aston Martin and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Martin and Bondbloxx ETF
The main advantage of trading using opposite Aston Martin and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Martin position performs unexpectedly, Bondbloxx ETF 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 Bondbloxx ETF will offset losses from the drop in Bondbloxx ETF's long position.| Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Guangzhou Automobile Group | Aston Martin vs. Dowlais Group plc | Aston Martin vs. NFI Group |
| Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust |
Check out your portfolio center.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.
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