Correlation Between BNP Paribas and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Amundi FTSE 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on BNP Paribas and Amundi FTSE 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 Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Amundi FTSE.
Diversification Opportunities for BNP Paribas and Amundi FTSE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNP and Amundi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of BNP Paribas i.e., BNP Paribas and Amundi FTSE go up and down completely randomly.
Pair Corralation between BNP Paribas and Amundi FTSE
Assuming the 90 days trading horizon BNP Paribas Easy is expected to generate 0.69 times more return on investment than Amundi FTSE. However, BNP Paribas Easy is 1.46 times less risky than Amundi FTSE. It trades about 0.71 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about 0.18 per unit of risk. If you would invest 1,268 in BNP Paribas Easy on October 20, 2024 and sell it today you would earn a total of 118.00 from holding BNP Paribas Easy or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas Easy vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| BNP Paribas Easy |
| Amundi FTSE EPRANAREIT |
BNP Paribas and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Amundi FTSE
The main advantage of trading using opposite BNP Paribas and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Amundi FTSE 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 Amundi FTSE will offset losses from the drop in Amundi FTSE'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 |
| Amundi FTSE vs. Lyxor UCITS Japan | Amundi FTSE vs. Lyxor UCITS Japan | Amundi FTSE vs. Lyxor UCITS Stoxx | Amundi FTSE vs. Amundi CAC 40 |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |