Correlation Between Europacific Growth and Bondbloxx ETF

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

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

Diversification Opportunities for Europacific Growth and Bondbloxx ETF

0.58

Correlation Coefficient

Europacific Growth  Bondbloxx ETF

Very weak diversification

The 3 months correlation between Europacific and Bondbloxx is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund 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 Europacific Growth 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 Europacific Growth Fund 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 Europacific Growth i.e., Europacific Growth and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Europacific Growth and Bondbloxx ETF

Assuming the 90 days horizon Europacific Growth Fund is expected to generate 10.82 times more return on investment than Bondbloxx ETF. However, Europacific Growth is 10.82 times more volatile than Bondbloxx ETF Trust. It trades about 0.09 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.28 per unit of risk. If you would invest  5,417  in Europacific Growth Fund on December 24, 2024 and sell it today you would earn a total of  273.00  from holding Europacific Growth Fund or generate 5.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Europacific Growth Fund  vs.  Bondbloxx ETF Trust

Europacific Growth

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Europacific Growth Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Europacific Growth 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

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 22 (%) 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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Europacific Growth and Bondbloxx ETF

The main advantage of trading using opposite Europacific Growth and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth 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 Europacific Growth Fund 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.