Correlation Between VanEck Emerging and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Emerging 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 VanEck Emerging and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Emerging Markets and Bondbloxx ETF Trust, you can compare the effects of market volatilities on VanEck Emerging 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 VanEck Emerging with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Emerging and Bondbloxx ETF.
Diversification Opportunities for VanEck Emerging and Bondbloxx ETF
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VanEck and Bondbloxx is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Emerging Markets 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 VanEck Emerging 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 VanEck Emerging Markets 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 VanEck Emerging i.e., VanEck Emerging and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between VanEck Emerging and Bondbloxx ETF
Given the investment horizon of 90 days VanEck Emerging Markets is expected to under-perform the Bondbloxx ETF. In addition to that, VanEck Emerging is 1.44 times more volatile than Bondbloxx ETF Trust. It trades about -0.01 of its total potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.05 per unit of volatility. If you would invest 4,194 in Bondbloxx ETF Trust on August 26, 2024 and sell it today you would earn a total of 14.00 from holding Bondbloxx ETF Trust or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Emerging Markets vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| VanEck Emerging Markets |
| Bondbloxx ETF Trust |
VanEck Emerging and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Emerging and Bondbloxx ETF
The main advantage of trading using opposite VanEck Emerging and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Emerging 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.| VanEck Emerging vs. BondBloxx ETF Trust | VanEck Emerging vs. Virtus ETF Trust | VanEck Emerging vs. Ocean Park High | VanEck Emerging vs. Virtus ETF Trust |
| Bondbloxx ETF vs. iShares JP Morgan | Bondbloxx ETF vs. Invesco Emerging Markets | Bondbloxx ETF vs. iShares JP Morgan | Bondbloxx ETF vs. iShares JP Morgan |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |