Correlation Between SPDR Barclays and BondBloxx ETF

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

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

Diversification Opportunities for SPDR Barclays and BondBloxx ETF

1.0

Correlation Coefficient

SPDR Barclays  BondBloxx ETF

No risk reduction

The 3 months correlation between SPDR and BondBloxx is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Long 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 SPDR Barclays 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 SPDR Barclays Long 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 SPDR Barclays i.e., SPDR Barclays and BondBloxx ETF go up and down completely randomly.

Pair Corralation between SPDR Barclays and BondBloxx ETF

Given the investment horizon of 90 days SPDR Barclays is expected to generate 2.9 times less return on investment than BondBloxx ETF. In addition to that, SPDR Barclays is 1.06 times more volatile than BondBloxx ETF Trust. It trades about 0.01 of its total potential returns per unit of risk. BondBloxx ETF Trust is currently generating about 0.02 per unit of volatility. If you would invest  5,001  in BondBloxx ETF Trust on September 3, 2024 and sell it today you would earn a total of  39.00  from holding BondBloxx ETF Trust or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

SPDR Barclays Long  vs.  BondBloxx ETF Trust

SPDR Barclays Long

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPDR Barclays Long has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, SPDR Barclays is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BondBloxx ETF Trust

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BondBloxx ETF Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, BondBloxx ETF is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SPDR Barclays and BondBloxx ETF

The main advantage of trading using opposite SPDR Barclays and BondBloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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 SPDR Barclays Long 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 Commodity Directory module to find actively traded commodities issued by global exchanges.