Correlation Between SPDR Barclays and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and BNP Paribas 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 SPDR Barclays and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Capital and BNP Paribas Easy, you can compare the effects of market volatilities on SPDR Barclays and BNP Paribas 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 SPDR Barclays with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and BNP Paribas.
Diversification Opportunities for SPDR Barclays and BNP Paribas
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and BNP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Capital and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy and SPDR Barclays 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 SPDR Barclays Capital are associated (or correlated) with BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and BNP Paribas go up and down completely randomly.
Pair Corralation between SPDR Barclays and BNP Paribas
Assuming the 90 days trading horizon SPDR Barclays Capital is expected to generate 0.07 times more return on investment than BNP Paribas. However, SPDR Barclays Capital is 14.0 times less risky than BNP Paribas. It trades about 0.18 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about -0.02 per unit of risk. If you would invest 5,177 in SPDR Barclays Capital on November 2, 2024 and sell it today you would earn a total of 76.00 from holding SPDR Barclays Capital or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Capital vs. BNP Paribas Easy
Performance |
| Timeline |
| SPDR Barclays Capital |
| BNP Paribas Easy |
SPDR Barclays and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and BNP Paribas
The main advantage of trading using opposite SPDR Barclays and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR Barclays Cap | SPDR Barclays vs. SPDR SP 500 |
| BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. Lyxor MSCI Brazil | BNP Paribas vs. Lyxor MSCI Indonesia | BNP Paribas vs. Amundi ETF MSCI |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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