Correlation Between Bukit Jalil and Bondbloxx ETF

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

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

Diversification Opportunities for Bukit Jalil and Bondbloxx ETF

-0.07

Correlation Coefficient

Bukit Jalil  Bondbloxx ETF

Good diversification

The 3 months correlation between Bukit and Bondbloxx is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Jalil Global 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 Bukit Jalil 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 Bukit Jalil Global 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 Bukit Jalil i.e., Bukit Jalil and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Bukit Jalil and Bondbloxx ETF

Assuming the 90 days horizon Bukit Jalil Global is expected to generate 245.83 times more return on investment than Bondbloxx ETF. However, Bukit Jalil is 245.83 times more volatile than Bondbloxx ETF Trust. It trades about 0.12 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.09 per unit of risk. If you would invest  5.53  in Bukit Jalil Global on October 7, 2024 and sell it today you would lose (2.70) from holding Bukit Jalil Global or give up 48.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	27.02%
Values	Daily Returns

Bukit Jalil Global  vs.  Bondbloxx ETF Trust

Bukit Jalil Global

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bukit Jalil Global are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Bukit Jalil showed solid returns over the last few months and may actually be approaching a breakup point.

Bondbloxx ETF Trust

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 5 (%) 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 Bukit Jalil and Bondbloxx ETF

The main advantage of trading using opposite Bukit Jalil and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Jalil 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 Bukit Jalil Global 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.

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