Correlation Between US Treasury and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both US Treasury 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 US Treasury and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Treasury 12 and Bondbloxx ETF Trust, you can compare the effects of market volatilities on US Treasury 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 US Treasury with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Treasury and Bondbloxx ETF.
Diversification Opportunities for US Treasury and Bondbloxx ETF
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OBIL and Bondbloxx is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding US Treasury 12 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 US Treasury 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 US Treasury 12 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 US Treasury i.e., US Treasury and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between US Treasury and Bondbloxx ETF
Given the investment horizon of 90 days US Treasury is expected to generate 2.93 times less return on investment than Bondbloxx ETF. But when comparing it to its historical volatility, US Treasury 12 is 18.12 times less risky than Bondbloxx ETF. It trades about 0.42 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,612 in Bondbloxx ETF Trust on August 30, 2024 and sell it today you would earn a total of 39.00 from holding Bondbloxx ETF Trust or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Treasury 12 vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| US Treasury 12 |
| Bondbloxx ETF Trust |
US Treasury and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Treasury and Bondbloxx ETF
The main advantage of trading using opposite US Treasury and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Treasury 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.| US Treasury vs. Rbb Fund | US Treasury vs. Rbb Fund | US Treasury vs. Rbb Fund | US Treasury vs. US Treasury 6 |
| Bondbloxx ETF vs. SPDR Barclays Short | Bondbloxx ETF vs. SPDR Portfolio Intermediate | Bondbloxx ETF vs. SPDR Barclays Long | Bondbloxx ETF vs. SPDR Barclays Intermediate |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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