Correlation Between Bondbloxx ETF and Erste Group
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Erste Group 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 Erste Group 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 Erste Group Bank, you can compare the effects of market volatilities on Bondbloxx ETF and Erste Group 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 Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Erste Group.
Diversification Opportunities for Bondbloxx ETF and Erste Group
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bondbloxx and Erste is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank 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 Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Erste Group go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Erste Group
Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to under-perform the Erste Group. But the etf apears to be less risky and, when comparing its historical volatility, Bondbloxx ETF Trust is 20.04 times less risky than Erste Group. The etf trades about -0.05 of its potential returns per unit of risk. The Erste Group Bank is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,906 in Erste Group Bank on October 7, 2024 and sell it today you would earn a total of 78.00 from holding Erste Group Bank or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Erste Group Bank
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Erste Group Bank |
Bondbloxx ETF and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Erste Group
The main advantage of trading using opposite Bondbloxx ETF and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group'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 |
| Erste Group vs. DBS Group Holdings | Erste Group vs. Swedbank AB | Erste Group vs. United Overseas Bank | Erste Group vs. Bank Mandiri Persero |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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