Correlation Between SPDR Gold and BNP Paribas
Specify exactly 2 symbols:
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
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and BNP is -0.47. 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 1.21 times more return on investment than BNP Paribas. However, SPDR Gold is 1.21 times more volatile than BNP Paribas Easy. It trades about 0.11 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.05 per unit of risk. If you would invest 16,835 in SPDR Gold Shares on September 4, 2024 and sell it today you would earn a total of 6,324 from holding SPDR Gold Shares or generate 37.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.69% |
| 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 |
| BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas vs. iShares VII PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| 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 |