Correlation Between Bondbloxx ETF and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and SPDR Barclays 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 SPDR Barclays 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 SPDR Barclays Short, you can compare the effects of market volatilities on Bondbloxx ETF and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and SPDR Barclays.
Diversification Opportunities for Bondbloxx ETF and SPDR Barclays
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bondbloxx and SPDR is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and SPDR Barclays Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Short 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Short has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and SPDR Barclays go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and SPDR Barclays
Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to under-perform the SPDR Barclays. In addition to that, Bondbloxx ETF is 4.54 times more volatile than SPDR Barclays Short. It trades about -0.14 of its total potential returns per unit of risk. SPDR Barclays Short is currently generating about 0.1 per unit of volatility. If you would invest 2,907 in SPDR Barclays Short on January 12, 2025 and sell it today you would earn a total of 9.00 from holding SPDR Barclays Short or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. SPDR Barclays Short
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| SPDR Barclays Short |
Bondbloxx ETF and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and SPDR Barclays
The main advantage of trading using opposite Bondbloxx ETF and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Bondbloxx ETF vs. US Treasury 20 | Bondbloxx ETF vs. US Treasury 5 | Bondbloxx ETF vs. US Treasury 3 | Bondbloxx ETF vs. Rbb Fund |
| SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Portfolio Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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