Correlation Between Bondbloxx ETF and Farmers Bancorp
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Farmers Bancorp 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 Farmers Bancorp 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 Farmers Bancorp, you can compare the effects of market volatilities on Bondbloxx ETF and Farmers Bancorp 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 Farmers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Farmers Bancorp.
Diversification Opportunities for Bondbloxx ETF and Farmers Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bondbloxx and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Farmers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers Bancorp 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 Farmers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers Bancorp has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Farmers Bancorp go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Farmers Bancorp
Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 18.1 times less return on investment than Farmers Bancorp. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 20.78 times less risky than Farmers Bancorp. It trades about 0.33 of its potential returns per unit of risk. Farmers Bancorp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,425 in Farmers Bancorp on September 13, 2024 and sell it today you would earn a total of 375.00 from holding Farmers Bancorp or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Farmers Bancorp
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Farmers Bancorp |
Bondbloxx ETF and Farmers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Farmers Bancorp
The main advantage of trading using opposite Bondbloxx ETF and Farmers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Farmers Bancorp 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 Farmers Bancorp will offset losses from the drop in Farmers Bancorp'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 |
| Farmers Bancorp vs. First Farmers Financial | Farmers Bancorp vs. Farmers Merchants Bancorp | Farmers Bancorp vs. Lakeland Financial | Farmers Bancorp vs. Eagle Financial Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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