Build Funds Correlations

BFIX Etf  USD 22.99  0.15  0.66%   
The correlation of Build Funds is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Build Funds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Build Funds Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Very weak diversification

The correlation between Build Funds Trust and NYA is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Build Funds Trust and NYA in the same portfolio, assuming nothing else is changed.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Build Funds Trust. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
  
The ability to find closely correlated positions to Build Funds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Build Funds when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Build Funds - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Build Funds Trust to buy it.

Moving together with Build Etf

  0.73WS Worthington SteelPairCorr

Moving against Build Etf

  0.5FMST Foremost Lithium ResourcePairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
MRKJPM
MSFTMETA
UBERMETA
MRKMETA
JPMCRM
MRKCRM
  
High negative correlations   
XOMCRM
XOMA

Build Funds Competition Risk-Adjusted Indicators

There is a big difference between Build Etf performing well and Build Funds ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Build Funds' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
META  1.63  0.44  0.32  0.63  0.91 
 3.27 
 23.50 
MSFT  0.85  0.08  0.00  0.32  0.89 
 1.89 
 4.57 
UBER  1.52  0.35  0.24  0.40  1.24 
 3.07 
 18.39 
F  1.56  0.11  0.06  0.26  1.58 
 3.17 
 12.03 
T  1.06  0.01 (0.05) 0.18  1.33 
 2.82 
 7.16 
A  1.20  0.02  0.05  0.17  1.30 
 2.31 
 14.19 
CRM  1.24  0.21  0.21  0.31  0.85 
 3.22 
 12.95 
JPM  0.50  0.20  0.24  0.53  0.00 
 1.73 
 3.13 
MRK  0.68  0.28  0.30  0.65  0.00 
 1.95 
 5.55 
XOM  0.89 (0.11)(0.15)(0.01) 1.01 
 2.04 
 5.26 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Build Funds without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Build Funds Trust?

The danger of trading Build Funds Trust is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Build Funds is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Build Funds. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Build Funds Trust is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Build Funds Trust. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
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.

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When running Build Funds' price analysis, check to measure Build Funds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Build Funds is operating at the current time. Most of Build Funds' value examination focuses on studying past and present price action to predict the probability of Build Funds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Build Funds' price. Additionally, you may evaluate how the addition of Build Funds to your portfolios can decrease your overall portfolio volatility.
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The market value of Build Funds Trust is measured differently than its book value, which is the value of Build that is recorded on the company's balance sheet. Investors also form their own opinion of Build Funds' value that differs from its market value or its book value, called intrinsic value, which is Build Funds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Build Funds' market value can be influenced by many factors that don't directly affect Build Funds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Build Funds' value and its price as these two are different measures arrived at by different means. Investors typically determine if Build Funds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Build Funds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.