Correlation Between BNPP BONDSRI and Caisse Regionale
Can any of the company-specific risk be diversified away by investing in both BNPP BONDSRI and Caisse Regionale 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 BNPP BONDSRI and Caisse Regionale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNPP BONDSRI ETF and Caisse Regionale de, you can compare the effects of market volatilities on BNPP BONDSRI and Caisse Regionale 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 BNPP BONDSRI with a short position of Caisse Regionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNPP BONDSRI and Caisse Regionale.
Diversification Opportunities for BNPP BONDSRI and Caisse Regionale
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNPP and Caisse is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BNPP BONDSRI ETF and Caisse Regionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse Regionale and BNPP BONDSRI 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 BNPP BONDSRI ETF are associated (or correlated) with Caisse Regionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse Regionale has no effect on the direction of BNPP BONDSRI i.e., BNPP BONDSRI and Caisse Regionale go up and down completely randomly.
Pair Corralation between BNPP BONDSRI and Caisse Regionale
Assuming the 90 days trading horizon BNPP BONDSRI is expected to generate 3.45 times less return on investment than Caisse Regionale. But when comparing it to its historical volatility, BNPP BONDSRI ETF is 5.85 times less risky than Caisse Regionale. It trades about 0.23 of its potential returns per unit of risk. Caisse Regionale de is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,600 in Caisse Regionale de on August 30, 2024 and sell it today you would earn a total of 200.00 from holding Caisse Regionale de or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNPP BONDSRI ETF vs. Caisse Regionale de
Performance |
| Timeline |
| BNPP BONDSRI ETF |
| Caisse Regionale |
BNPP BONDSRI and Caisse Regionale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNPP BONDSRI and Caisse Regionale
The main advantage of trading using opposite BNPP BONDSRI and Caisse Regionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNPP BONDSRI position performs unexpectedly, Caisse Regionale 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 Caisse Regionale will offset losses from the drop in Caisse Regionale's long position.| BNPP BONDSRI vs. Lyxor UCITS Japan | BNPP BONDSRI vs. Lyxor UCITS Japan | BNPP BONDSRI vs. Lyxor UCITS Stoxx | BNPP BONDSRI 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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