Correlation Between Bondbloxx ETF and Apollo Bancorp

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

Diversification Opportunities for Bondbloxx ETF and Apollo Bancorp

0.64

Correlation Coefficient

Bondbloxx ETF  Apollo Bancorp

Poor diversification

The 3 months correlation between Bondbloxx and Apollo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp 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 Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Apollo Bancorp go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Apollo Bancorp

Given the investment horizon of 90 days Bondbloxx ETF Trust is expected to generate 1.11 times more return on investment than Apollo Bancorp. However, Bondbloxx ETF is 1.11 times more volatile than Apollo Bancorp. It trades about 0.02 of its potential returns per unit of risk. Apollo Bancorp is currently generating about -0.21 per unit of risk. If you would invest  3,982  in Bondbloxx ETF Trust on September 16, 2024 and sell it today you would earn a total of  16.00  from holding Bondbloxx ETF Trust or generate 0.4% 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.  Apollo Bancorp

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 latest uncertain performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Apollo Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Bondbloxx ETF and Apollo Bancorp

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

The idea behind Bondbloxx ETF Trust and Apollo Bancorp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.