Correlation Between Bondbloxx ETF and CNB

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

Diversification Opportunities for Bondbloxx ETF and CNB

0.43

Correlation Coefficient

Bondbloxx ETF  CNB

Very weak diversification

The 3 months correlation between Bondbloxx and CNB is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and CNB Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNB Corporation 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 CNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNB Corporation has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and CNB go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and CNB

Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 2.83 times less return on investment than CNB. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 11.43 times less risky than CNB. It trades about 0.29 of its potential returns per unit of risk. CNB Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,750  in CNB Corporation on December 26, 2024 and sell it today you would earn a total of  61.00  from holding CNB Corporation or generate 3.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	81.67%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  CNB Corp.

Bondbloxx ETF Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 23 (%) 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.

CNB Corporation

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CNB Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental drivers, CNB is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bondbloxx ETF and CNB

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

The idea behind Bondbloxx ETF Trust and CNB Corporation 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.