Correlation Between BNP Paribas and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Lyxor UCITS 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 BNP Paribas and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas Easy and Lyxor UCITS Japan, you can compare the effects of market volatilities on BNP Paribas and Lyxor UCITS 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 BNP Paribas with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Lyxor UCITS.
Diversification Opportunities for BNP Paribas and Lyxor UCITS
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNP and Lyxor is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and Lyxor UCITS Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Japan and BNP Paribas 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 BNP Paribas Easy are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Japan has no effect on the direction of BNP Paribas i.e., BNP Paribas and Lyxor UCITS go up and down completely randomly.
Pair Corralation between BNP Paribas and Lyxor UCITS
Assuming the 90 days trading horizon BNP Paribas is expected to generate 2.21 times less return on investment than Lyxor UCITS. But when comparing it to its historical volatility, BNP Paribas Easy is 13.08 times less risky than Lyxor UCITS. It trades about 0.44 of its potential returns per unit of risk. Lyxor UCITS Japan is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 21,390 in Lyxor UCITS Japan on September 1, 2024 and sell it today you would earn a total of 320.00 from holding Lyxor UCITS Japan or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BNP Paribas Easy vs. Lyxor UCITS Japan
Performance |
| Timeline |
| BNP Paribas Easy |
| Lyxor UCITS Japan |
BNP Paribas and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Lyxor UCITS
The main advantage of trading using opposite BNP Paribas and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Stoxx | BNP Paribas vs. Amundi CAC 40 |
| Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |