Correlation Between PT Bank and Bondbloxx ETF

Can any of the company-specific risk be diversified away by investing in both PT Bank and Bondbloxx ETF 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 PT Bank and Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Bank Rakyat and Bondbloxx ETF Trust, you can compare the effects of market volatilities on PT Bank and Bondbloxx ETF 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 PT Bank with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Bondbloxx ETF.

Diversification Opportunities for PT Bank and Bondbloxx ETF

0.5

Correlation Coefficient

PT Bank  Bondbloxx ETF

Very weak diversification

The 3 months correlation between BKRKF and Bondbloxx is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust and PT Bank 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 PT Bank Rakyat are associated (or correlated) with Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of PT Bank i.e., PT Bank and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between PT Bank and Bondbloxx ETF

Assuming the 90 days horizon PT Bank Rakyat is expected to generate 44.37 times more return on investment than Bondbloxx ETF. However, PT Bank is 44.37 times more volatile than Bondbloxx ETF Trust. It trades about 0.02 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.15 per unit of risk. If you would invest  35.00  in PT Bank Rakyat on September 12, 2024 and sell it today you would lose (6.00) from holding PT Bank Rakyat or give up 17.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	74.43%
Values	Daily Returns

PT Bank Rakyat  vs.  Bondbloxx ETF Trust

PT Bank Rakyat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Bank Rakyat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, PT Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Bondbloxx ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bondbloxx ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Bondbloxx ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PT Bank and Bondbloxx ETF

The main advantage of trading using opposite PT Bank and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Bondbloxx ETF 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 Bondbloxx ETF will offset losses from the drop in Bondbloxx ETF's long position.

The idea behind PT Bank Rakyat and Bondbloxx ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.