Correlation Between Bondbloxx ETF and Victory Sophus

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

Diversification Opportunities for Bondbloxx ETF and Victory Sophus

0.89

Correlation Coefficient

Bondbloxx ETF  Victory Sophus

Very poor diversification

The 3 months correlation between Bondbloxx and Victory is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Victory Sophus Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Sophus Emerging 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 Victory Sophus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Sophus Emerging has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Victory Sophus go up and down completely randomly.

Pair Corralation between Bondbloxx ETF and Victory Sophus

Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 7.1 times less return on investment than Victory Sophus. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 5.88 times less risky than Victory Sophus. It trades about 0.16 of its potential returns per unit of risk. Victory Sophus Emerging is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2,070  in Victory Sophus Emerging on May 7, 2025 and sell it today you would earn a total of  99.00  from holding Victory Sophus Emerging or generate 4.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	60.66%
Values	Daily Returns

Bondbloxx ETF Trust  vs.  Victory Sophus Emerging

Bondbloxx ETF Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 12 (%) 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.

Victory Sophus Emerging

Risk-Adjusted Performance

Good

Over the last 90 days Victory Sophus Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak primary indicators, Victory Sophus may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bondbloxx ETF and Victory Sophus

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

The idea behind Bondbloxx ETF Trust and Victory Sophus Emerging 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..