Correlation Between BNP Paribas and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Amundi ETF 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 BNP Paribas and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas Easy and Amundi ETF MSCI, you can compare the effects of market volatilities on BNP Paribas and Amundi ETF 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 BNP Paribas with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Amundi ETF.
Diversification Opportunities for BNP Paribas and Amundi ETF
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNP and Amundi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and BNP Paribas 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 BNP Paribas Easy are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of BNP Paribas i.e., BNP Paribas and Amundi ETF go up and down completely randomly.
Pair Corralation between BNP Paribas and Amundi ETF
Assuming the 90 days trading horizon BNP Paribas is expected to generate 1.9 times less return on investment than Amundi ETF. In addition to that, BNP Paribas is 1.11 times more volatile than Amundi ETF MSCI. It trades about 0.06 of its total potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.12 per unit of volatility. If you would invest 39,934 in Amundi ETF MSCI on September 14, 2024 and sell it today you would earn a total of 22,139 from holding Amundi ETF MSCI or generate 55.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
BNP Paribas Easy vs. Amundi ETF MSCI
Performance |
| Timeline |
| BNP Paribas Easy |
| Amundi ETF MSCI |
BNP Paribas and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Amundi ETF
The main advantage of trading using opposite BNP Paribas and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Japan | BNP Paribas vs. Lyxor UCITS Stoxx | BNP Paribas vs. Amundi CAC 40 |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Stoxx Europe |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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