Correlation Between Ossiam Minimum and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum 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 Ossiam Minimum and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam Minimum Variance and BNP Paribas Easy, you can compare the effects of market volatilities on Ossiam Minimum 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 Ossiam Minimum with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and BNP Paribas.
Diversification Opportunities for Ossiam Minimum and BNP Paribas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ossiam and BNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Minimum Variance 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 Ossiam Minimum 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 Ossiam Minimum Variance 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 Ossiam Minimum i.e., Ossiam Minimum and BNP Paribas go up and down completely randomly.
Pair Corralation between Ossiam Minimum and BNP Paribas
Assuming the 90 days trading horizon Ossiam Minimum Variance is expected to under-perform the BNP Paribas. But the etf apears to be less risky and, when comparing its historical volatility, Ossiam Minimum Variance is 2.4 times less risky than BNP Paribas. The etf trades about -0.04 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 17,366 in BNP Paribas Easy on September 3, 2024 and sell it today you would earn a total of 5,114 from holding BNP Paribas Easy or generate 29.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ossiam Minimum Variance vs. BNP Paribas Easy
Performance |
| Timeline |
| Ossiam Minimum Variance |
| BNP Paribas Easy |
Ossiam Minimum and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam Minimum and BNP Paribas
The main advantage of trading using opposite Ossiam Minimum and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Minimum 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.| Ossiam Minimum vs. Ossiam Lux Ossiam | Ossiam Minimum vs. Ossiam Europe ESG | Ossiam Minimum vs. Ossiam Lux | Ossiam Minimum vs. Ossiam Shiller Barclays |
| BNP Paribas vs. Amundi Index Solutions | BNP Paribas vs. Amundi Index Solutions | BNP Paribas vs. Manitou BF SA | BNP Paribas vs. Ossiam Minimum Variance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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