Correlation Between Amundi PEA and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Amundi PEA 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 Amundi PEA and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi PEA Immobilier and BNP Paribas Easy, you can compare the effects of market volatilities on Amundi PEA 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 Amundi PEA with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi PEA and BNP Paribas.
Diversification Opportunities for Amundi PEA and BNP Paribas
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amundi and BNP is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Amundi PEA Immobilier 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 Amundi PEA 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 Amundi PEA Immobilier 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 Amundi PEA i.e., Amundi PEA and BNP Paribas go up and down completely randomly.
Pair Corralation between Amundi PEA and BNP Paribas
Assuming the 90 days trading horizon Amundi PEA is expected to generate 1.33 times less return on investment than BNP Paribas. But when comparing it to its historical volatility, Amundi PEA Immobilier is 1.04 times less risky than BNP Paribas. It trades about 0.1 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 796.00 in BNP Paribas Easy on October 20, 2024 and sell it today you would earn a total of 22.00 from holding BNP Paribas Easy or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi PEA Immobilier vs. BNP Paribas Easy
Performance |
| Timeline |
| Amundi PEA Immobilier |
| BNP Paribas Easy |
Amundi PEA and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi PEA and BNP Paribas
The main advantage of trading using opposite Amundi PEA and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi PEA 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.| Amundi PEA vs. Lyxor UCITS Japan | Amundi PEA vs. Lyxor UCITS Japan | Amundi PEA vs. Lyxor UCITS Stoxx | Amundi PEA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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