Correlation Between Bondbloxx ETF and Commercial International

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

Diversification Opportunities for Bondbloxx ETF and Commercial International

0.74

Correlation Coefficient

Bondbloxx ETF  Commercial International

Poor diversification

The 3 months correlation between Bondbloxx and Commercial is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Commercial International go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Commercial International

Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 2.56 times less return on investment than Commercial International. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 16.96 times less risky than Commercial International. It trades about 0.33 of its potential returns per unit of risk. Commercial International Bank is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  152.00  in Commercial International Bank on September 13, 2024 and sell it today you would earn a total of  2.00  from holding Commercial International Bank or generate 1.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  Commercial International Bank

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 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.

Commercial International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Commercial International Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Commercial International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bondbloxx ETF and Commercial International

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

The idea behind Bondbloxx ETF Trust and Commercial International Bank 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.