Correlation Between Akwel SA and BNPP BONDSRI
Can any of the company-specific risk be diversified away by investing in both Akwel SA and BNPP BONDSRI 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 Akwel SA and BNPP BONDSRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akwel SA and BNPP BONDSRI ETF, you can compare the effects of market volatilities on Akwel SA and BNPP BONDSRI 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 Akwel SA with a short position of BNPP BONDSRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akwel SA and BNPP BONDSRI.
Diversification Opportunities for Akwel SA and BNPP BONDSRI
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akwel and BNPP is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Akwel SA and BNPP BONDSRI ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNPP BONDSRI ETF and Akwel SA 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 Akwel SA are associated (or correlated) with BNPP BONDSRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNPP BONDSRI ETF has no effect on the direction of Akwel SA i.e., Akwel SA and BNPP BONDSRI go up and down completely randomly.
Pair Corralation between Akwel SA and BNPP BONDSRI
Assuming the 90 days trading horizon Akwel SA is expected to under-perform the BNPP BONDSRI. In addition to that, Akwel SA is 15.89 times more volatile than BNPP BONDSRI ETF. It trades about -0.21 of its total potential returns per unit of risk. BNPP BONDSRI ETF is currently generating about 0.36 per unit of volatility. If you would invest 937.00 in BNPP BONDSRI ETF on August 31, 2024 and sell it today you would earn a total of 14.00 from holding BNPP BONDSRI ETF or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akwel SA vs. BNPP BONDSRI ETF
Performance |
| Timeline |
| Akwel SA |
| BNPP BONDSRI ETF |
Akwel SA and BNPP BONDSRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akwel SA and BNPP BONDSRI
The main advantage of trading using opposite Akwel SA and BNPP BONDSRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akwel SA position performs unexpectedly, BNPP BONDSRI 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 BNPP BONDSRI will offset losses from the drop in BNPP BONDSRI's long position.| Akwel SA vs. Vente Unique | Akwel SA vs. Groupe Sfpi | Akwel SA vs. Cegedim SA | Akwel SA vs. SA Catana Group |
| BNPP BONDSRI vs. BNPP LC EURPAB | BNPP BONDSRI vs. BNPP EHY SRI | BNPP BONDSRI vs. BNPP Greenbond ETF | BNPP BONDSRI vs. BNPP EHY SRI |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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