Correlation Between IShares Core and BNP Paribas
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By analyzing existing cross correlation between iShares Core MSCI and BNP Paribas Easy, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and BNP Paribas.
Diversification Opportunities for IShares Core and BNP Paribas
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and BNP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI 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 IShares Core 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 iShares Core MSCI 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 IShares Core i.e., IShares Core and BNP Paribas go up and down completely randomly.
Pair Corralation between IShares Core and BNP Paribas
Assuming the 90 days trading horizon iShares Core MSCI is expected to under-perform the BNP Paribas. But the etf apears to be less risky and, when comparing its historical volatility, iShares Core MSCI is 1.13 times less risky than BNP Paribas. The etf trades about -0.01 of its potential returns per unit of risk. The BNP Paribas Easy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,829 in BNP Paribas Easy on September 1, 2024 and sell it today you would earn a total of 31.00 from holding BNP Paribas Easy or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Core MSCI vs. BNP Paribas Easy
Performance |
| Timeline |
| iShares Core MSCI |
| BNP Paribas Easy |
IShares Core and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and BNP Paribas
The main advantage of trading using opposite IShares Core and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Govt Bond | IShares Core vs. iShares Global AAA AA | IShares Core vs. iShares Smart City | IShares Core vs. iShares Broad High |
| BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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