Correlation Between Bondbloxx ETF and Jpmorgan Core

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

Diversification Opportunities for Bondbloxx ETF and Jpmorgan Core

0.96

Correlation Coefficient

Bondbloxx ETF  Jpmorgan Core

Almost no diversification

The 3 months correlation between Bondbloxx and Jpmorgan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Jpmorgan E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Bond 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 Jpmorgan Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Bond has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Jpmorgan Core go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Jpmorgan Core

Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 1.36 times less return on investment than Jpmorgan Core. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 3.34 times less risky than Jpmorgan Core. It trades about 0.29 of its potential returns per unit of risk. Jpmorgan E Bond is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,003  in Jpmorgan E Bond on December 30, 2024 and sell it today you would earn a total of  22.00  from holding Jpmorgan E Bond or generate 2.19% return on investment over 90 days.

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

Bondbloxx ETF Trust  vs.  Jpmorgan E Bond

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 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.

Jpmorgan E Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan E Bond are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Core 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 Jpmorgan Core

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

The idea behind Bondbloxx ETF Trust and Jpmorgan E Bond 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.