Correlation Between Bondbloxx ETF and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Aston Martin 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 Aston Martin 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 Aston Martin Lagonda, you can compare the effects of market volatilities on Bondbloxx ETF and Aston Martin 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 Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Aston Martin.
Diversification Opportunities for Bondbloxx ETF and Aston Martin
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bondbloxx and Aston is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda 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 Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Aston Martin go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Aston Martin
Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to generate 0.03 times more return on investment than Aston Martin. However, Bondbloxx ETF Trust is 32.66 times less risky than Aston Martin. It trades about 0.1 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.01 per unit of risk. If you would invest 4,887 in Bondbloxx ETF Trust on October 25, 2024 and sell it today you would earn a total of 26.00 from holding Bondbloxx ETF Trust or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Aston Martin Lagonda
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Aston Martin Lagonda |
Bondbloxx ETF and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Aston Martin
The main advantage of trading using opposite Bondbloxx ETF and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin'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 |
| Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Guangzhou Automobile Group | Aston Martin vs. Dowlais Group plc | Aston Martin vs. NFI Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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