Correlation Between Bondbloxx ETF and Nuveen Massachusetts

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

Diversification Opportunities for Bondbloxx ETF and Nuveen Massachusetts

0.05

Correlation Coefficient

Bondbloxx ETF  Nuveen Massachusetts

Significant diversification

The 3 months correlation between Bondbloxx and Nuveen is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Nuveen Massachusetts Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Massachusetts 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 Nuveen Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Massachusetts has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Nuveen Massachusetts go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Nuveen Massachusetts

Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to generate 0.42 times more return on investment than Nuveen Massachusetts. However, Bondbloxx ETF Trust is 2.4 times less risky than Nuveen Massachusetts. It trades about 0.29 of its potential returns per unit of risk. Nuveen Massachusetts Municipal is currently generating about -0.08 per unit of risk. If you would invest  4,867  in Bondbloxx ETF Trust on December 29, 2024 and sell it today you would earn a total of  79.00  from holding Bondbloxx ETF Trust or generate 1.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  Nuveen Massachusetts Municipal

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.

Nuveen Massachusetts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Massachusetts Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Nuveen Massachusetts 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 Nuveen Massachusetts

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

The idea behind Bondbloxx ETF Trust and Nuveen Massachusetts Municipal 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.