Correlation Between SPDR Bloomberg and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Barclays and Bondbloxx ETF Trust, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Bondbloxx ETF.
Diversification Opportunities for SPDR Bloomberg and Bondbloxx ETF
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Bondbloxx is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays 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 SPDR Bloomberg 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 SPDR Bloomberg Barclays 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 SPDR Bloomberg i.e., SPDR Bloomberg and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Bondbloxx ETF
Given the investment horizon of 90 days SPDR Bloomberg is expected to generate 1.02 times less return on investment than Bondbloxx ETF. In addition to that, SPDR Bloomberg is 1.25 times more volatile than Bondbloxx ETF Trust. It trades about 0.11 of its total potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.15 per unit of volatility. If you would invest 4,008 in Bondbloxx ETF Trust on September 1, 2024 and sell it today you would earn a total of 232.00 from holding Bondbloxx ETF Trust or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
SPDR Bloomberg Barclays vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| SPDR Bloomberg Barclays |
| Bondbloxx ETF Trust |
SPDR Bloomberg and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and Bondbloxx ETF
The main advantage of trading using opposite SPDR Bloomberg and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.| SPDR Bloomberg vs. SPDR DoubleLine Emerging | SPDR Bloomberg vs. SPDR SSGA Fixed | SPDR Bloomberg vs. SPDR Series Trust | SPDR Bloomberg vs. SSGA Active Trust |
| Bondbloxx ETF vs. iShares JP Morgan | Bondbloxx ETF vs. SPDR Bloomberg Barclays | Bondbloxx ETF vs. SPDR DoubleLine Emerging | Bondbloxx ETF vs. JPMorgan USD Emerging |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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