Correlation Between Bondbloxx ETF and Bank Rakyat
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Bank Rakyat 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 Bank Rakyat 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 Bank Rakyat, you can compare the effects of market volatilities on Bondbloxx ETF and Bank Rakyat 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 Bank Rakyat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Bank Rakyat.
Diversification Opportunities for Bondbloxx ETF and Bank Rakyat
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bondbloxx and Bank is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Rakyat 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 Bank Rakyat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Rakyat has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Bank Rakyat go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Bank Rakyat
Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to generate 0.05 times more return on investment than Bank Rakyat. However, Bondbloxx ETF Trust is 20.64 times less risky than Bank Rakyat. It trades about 0.39 of its potential returns per unit of risk. Bank Rakyat is currently generating about -0.07 per unit of risk. If you would invest 4,889 in Bondbloxx ETF Trust on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Bondbloxx ETF Trust or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Bank Rakyat
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Bank Rakyat |
Bondbloxx ETF and Bank Rakyat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Bank Rakyat
The main advantage of trading using opposite Bondbloxx ETF and Bank Rakyat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Bank Rakyat 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 Bank Rakyat will offset losses from the drop in Bank Rakyat'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 |
| Bank Rakyat vs. Bank Mandiri Persero | Bank Rakyat vs. Eurobank Ergasias Services | Bank Rakyat vs. Nedbank Group | Bank Rakyat vs. Standard Bank 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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