Correlation Between Bondbloxx ETF and Bank of San

Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Bank of San 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 Bank of San 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 Bank of San, you can compare the effects of market volatilities on Bondbloxx ETF and Bank of San 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 Bank of San. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Bank of San.

Diversification Opportunities for Bondbloxx ETF and Bank of San

-0.29

Correlation Coefficient

Bondbloxx ETF  Bank of San

Very good diversification

The 3 months correlation between Bondbloxx and Bank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Bank of San in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of San 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 Bank of San. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of San has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Bank of San go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Bank of San

Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to under-perform the Bank of San. But the etf apears to be less risky and, when comparing its historical volatility, Bondbloxx ETF Trust is 1.19 times less risky than Bank of San. The etf trades about -0.01 of its potential returns per unit of risk. The Bank of San is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,720  in Bank of San on September 21, 2024 and sell it today you would earn a total of  430.00  from holding Bank of San or generate 15.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  Bank of San

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 latest uncertain performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Bank of San

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of San are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Bank of San may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Bondbloxx ETF and Bank of San

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

The idea behind Bondbloxx ETF Trust and Bank of San 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.