Correlation Between Build Funds and RBB Fund
Can any of the company-specific risk be diversified away by investing in both Build Funds and RBB Fund 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 Build Funds and RBB Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Build Funds Trust and The RBB Fund, you can compare the effects of market volatilities on Build Funds and RBB Fund 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 Build Funds with a short position of RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Build Funds and RBB Fund.
Diversification Opportunities for Build Funds and RBB Fund
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Build and RBB is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Build Funds Trust and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund and Build Funds 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 Build Funds Trust are associated (or correlated) with RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of Build Funds i.e., Build Funds and RBB Fund go up and down completely randomly.
Pair Corralation between Build Funds and RBB Fund
Given the investment horizon of 90 days Build Funds Trust is expected to generate 0.81 times more return on investment than RBB Fund. However, Build Funds Trust is 1.23 times less risky than RBB Fund. It trades about 0.18 of its potential returns per unit of risk. The RBB Fund is currently generating about -0.03 per unit of risk. If you would invest 2,536 in Build Funds Trust on October 23, 2025 and sell it today you would earn a total of 18.00 from holding Build Funds Trust or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Build Funds Trust vs. The RBB Fund
Performance |
| Timeline |
| Build Funds Trust |
| RBB Fund |
Build Funds and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Build Funds and RBB Fund
The main advantage of trading using opposite Build Funds and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Build Funds position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.| Build Funds vs. Tidal ETF Trust | Build Funds vs. First Trust Exchange Traded | Build Funds vs. TCW Transform Supply | Build Funds vs. YieldMax R2000 0DTE |
| RBB Fund vs. Innovator Equity Accelerated | RBB Fund vs. Northern Lights | RBB Fund vs. SPDR SSGA My2028 | RBB Fund vs. iShares 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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