Correlation Between Bondbloxx ETF and Swedbank
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Swedbank 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 Swedbank 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 Swedbank AB, you can compare the effects of market volatilities on Bondbloxx ETF and Swedbank 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 Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Swedbank.
Diversification Opportunities for Bondbloxx ETF and Swedbank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bondbloxx and Swedbank is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB 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 Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Swedbank go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Swedbank
Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 4.13 times less return on investment than Swedbank. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 13.06 times less risky than Swedbank. It trades about 0.1 of its potential returns per unit of risk. Swedbank AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,694 in Swedbank AB on September 12, 2024 and sell it today you would earn a total of 357.00 from holding Swedbank AB or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.69% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Swedbank AB
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Swedbank AB |
Bondbloxx ETF and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Swedbank
The main advantage of trading using opposite Bondbloxx ETF and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank'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 |
| Swedbank vs. PT Bank Rakyat | Swedbank vs. Morningstar Unconstrained Allocation | Swedbank vs. Bondbloxx ETF Trust | Swedbank vs. Spring Valley Acquisition |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |