Correlation Between SPDR Gold and BNP Paribas
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By analyzing existing cross correlation between SPDR Gold Shares and BNP Paribas Easy, you can compare the effects of market volatilities on SPDR Gold 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 Gold with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and BNP Paribas.
Diversification Opportunities for SPDR Gold and BNP Paribas
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and BNP is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares 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 Gold 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 Gold Shares 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 Gold i.e., SPDR Gold and BNP Paribas go up and down completely randomly.
Pair Corralation between SPDR Gold and BNP Paribas
Assuming the 90 days trading horizon SPDR Gold Shares is expected to generate 0.56 times more return on investment than BNP Paribas. However, SPDR Gold Shares is 1.79 times less risky than BNP Paribas. It trades about 0.12 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.01 per unit of risk. If you would invest 19,752 in SPDR Gold Shares on September 3, 2024 and sell it today you would earn a total of 3,441 from holding SPDR Gold Shares or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.69% |
| Values | Daily Returns |
SPDR Gold Shares vs. BNP Paribas Easy
Performance |
| Timeline |
| SPDR Gold Shares |
| BNP Paribas Easy |
SPDR Gold and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and BNP Paribas
The main advantage of trading using opposite SPDR Gold and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold 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 Gold vs. SPDR Barclays 10 | SPDR Gold vs. SPDR ICE BofA | SPDR Gold vs. SPDR SP Utilities | SPDR Gold vs. SPDR ICE BofA |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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