Correlation Between BondBloxx ETF and Tidal Trust

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

Diversification Opportunities for BondBloxx ETF and Tidal Trust

-0.37

Correlation Coefficient

BondBloxx ETF  Tidal Trust

Very good diversification

The 3 months correlation between BondBloxx and Tidal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BondBloxx ETF Trust and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of BondBloxx ETF i.e., BondBloxx ETF and Tidal Trust go up and down completely randomly.

Pair Corralation between BondBloxx ETF and Tidal Trust

Given the investment horizon of 90 days BondBloxx ETF Trust is expected to generate 0.13 times more return on investment than Tidal Trust. However, BondBloxx ETF Trust is 7.71 times less risky than Tidal Trust. It trades about 0.1 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.06 per unit of risk. If you would invest  2,878  in BondBloxx ETF Trust on May 6, 2025 and sell it today you would earn a total of  602.00  from holding BondBloxx ETF Trust or generate 20.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	18.02%
Values	Daily Returns

BondBloxx ETF Trust  vs.  Tidal Trust II

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 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BondBloxx ETF is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Tidal Trust II

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tidal Trust II has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tidal Trust is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with BondBloxx ETF and Tidal Trust

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

The idea behind BondBloxx ETF Trust and Tidal Trust II 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.