Correlation Between Bondbloxx ETF and Great Basin

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

Diversification Opportunities for Bondbloxx ETF and Great Basin

-0.03

Correlation Coefficient

Bondbloxx ETF  Great Basin

Good diversification

The 3 months correlation between Bondbloxx and Great is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Great Basin Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Basin Energies 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 Great Basin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Basin Energies has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Great Basin go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Great Basin

Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 4.1 times less return on investment than Great Basin. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 42.03 times less risky than Great Basin. It trades about 0.05 of its potential returns per unit of risk. Great Basin Energies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  5.10  in Great Basin Energies on February 28, 2024 and sell it today you would lose (0.59) from holding Great Basin Energies or give up 11.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  Great Basin Energies

Bondbloxx ETF Trust

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Bondbloxx ETF is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Great Basin Energies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Basin Energies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Great Basin is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bondbloxx ETF and Great Basin

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

The idea behind Bondbloxx ETF Trust and Great Basin Energies 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..