Correlation Between Global X and Bondbloxx ETF
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Short Term and Bondbloxx ETF Trust, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Bondbloxx ETF.
Diversification Opportunities for Global X and Bondbloxx ETF
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Bondbloxx is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Global X Short Term 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 Global X 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 Global X Short Term 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 Global X i.e., Global X and Bondbloxx ETF go up and down completely randomly.
Pair Corralation between Global X and Bondbloxx ETF
Given the investment horizon of 90 days Global X is expected to generate 3.78 times less return on investment than Bondbloxx ETF. In addition to that, Global X is 2.15 times more volatile than Bondbloxx ETF Trust. It trades about 0.09 of its total potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.74 per unit of volatility. If you would invest 4,722 in Bondbloxx ETF Trust on September 26, 2024 and sell it today you would earn a total of 309.00 from holding Bondbloxx ETF Trust or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 24.12% |
| Values | Daily Returns |
Global X Short Term vs. Bondbloxx ETF Trust
Performance |
| Timeline |
| Global X Short |
| Bondbloxx ETF Trust |
Global X and Bondbloxx ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Bondbloxx ETF
The main advantage of trading using opposite Global X and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Bondbloxx ETF Trust | Global X vs. Bondbloxx ETF Trust | Global X vs. Bondbloxx ETF Trust | Global X vs. Bondbloxx ETF Trust |
| Bondbloxx ETF vs. JPMorgan Ultra Short Income | Bondbloxx ETF vs. WisdomTree Floating Rate | Bondbloxx ETF vs. iShares Ultra Short Term | Bondbloxx ETF vs. iShares Treasury Floating |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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