Correlation Between BondBloxx ETF and Xtrackers High
Can any of the company-specific risk be diversified away by investing in both BondBloxx ETF and Xtrackers High 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 BondBloxx ETF and Xtrackers High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BondBloxx ETF Trust and Xtrackers High Beta, you can compare the effects of market volatilities on BondBloxx ETF and Xtrackers High 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 BondBloxx ETF with a short position of Xtrackers High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BondBloxx ETF and Xtrackers High.
Diversification Opportunities for BondBloxx ETF and Xtrackers High
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BondBloxx and Xtrackers is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BondBloxx ETF Trust and Xtrackers High Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers High Beta and BondBloxx ETF 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 BondBloxx ETF Trust are associated (or correlated) with Xtrackers High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers High Beta has no effect on the direction of BondBloxx ETF i.e., BondBloxx ETF and Xtrackers High go up and down completely randomly.
Pair Corralation between BondBloxx ETF and Xtrackers High
Given the investment horizon of 90 days BondBloxx ETF Trust is expected to generate 1.2 times more return on investment than Xtrackers High. However, BondBloxx ETF is 1.2 times more volatile than Xtrackers High Beta. It trades about 0.23 of its potential returns per unit of risk. Xtrackers High Beta is currently generating about 0.2 per unit of risk. If you would invest 3,689 in BondBloxx ETF Trust on November 2, 2024 and sell it today you would earn a total of 277.00 from holding BondBloxx ETF Trust or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.04% |
| Values | Daily Returns |
BondBloxx ETF Trust vs. Xtrackers High Beta
Performance |
| Timeline |
| BondBloxx ETF Trust |
| Xtrackers High Beta |
BondBloxx ETF and Xtrackers High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BondBloxx ETF and Xtrackers High
The main advantage of trading using opposite BondBloxx ETF and Xtrackers High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BondBloxx ETF position performs unexpectedly, Xtrackers High 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 Xtrackers High will offset losses from the drop in Xtrackers High's long position.| BondBloxx ETF vs. BondBloxx ETF Trust | BondBloxx ETF vs. BondBloxx ETF Trust | BondBloxx ETF vs. BondBloxx ETF Trust | BondBloxx ETF vs. BondBloxx ETF Trust |
| Xtrackers High vs. Xtrackers Short Duration | Xtrackers High vs. FlexShares High Yield | Xtrackers High vs. Xtrackers Low Beta | Xtrackers High vs. iShares Edge High |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |