Correlation Between Hashdex Crypto and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Hashdex Crypto 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 Hashdex Crypto and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hashdex Crypto Momentum and BNP Paribas Easy, you can compare the effects of market volatilities on Hashdex Crypto 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 Hashdex Crypto with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hashdex Crypto and BNP Paribas.
Diversification Opportunities for Hashdex Crypto and BNP Paribas
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hashdex and BNP is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hashdex Crypto Momentum 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 Hashdex Crypto 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 Hashdex Crypto Momentum 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 Hashdex Crypto i.e., Hashdex Crypto and BNP Paribas go up and down completely randomly.
Pair Corralation between Hashdex Crypto and BNP Paribas
Assuming the 90 days trading horizon Hashdex Crypto Momentum is expected to generate 5.24 times more return on investment than BNP Paribas. However, Hashdex Crypto is 5.24 times more volatile than BNP Paribas Easy. It trades about 0.09 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.13 per unit of risk. If you would invest 11,878 in Hashdex Crypto Momentum on October 20, 2024 and sell it today you would earn a total of 803.00 from holding Hashdex Crypto Momentum or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hashdex Crypto Momentum vs. BNP Paribas Easy
Performance |
| Timeline |
| Hashdex Crypto Momentum |
| BNP Paribas Easy |
Hashdex Crypto and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hashdex Crypto and BNP Paribas
The main advantage of trading using opposite Hashdex Crypto and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hashdex Crypto 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.| Hashdex Crypto vs. Lyxor UCITS Japan | Hashdex Crypto vs. Lyxor UCITS Japan | Hashdex Crypto vs. Lyxor UCITS Stoxx | Hashdex Crypto vs. Amundi CAC 40 |
| BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Stoxx | BNP Paribas 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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