Correlation Between Xtrackers and BNP Paribas
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xtrackers II and BNP Paribas Easy, you can compare the effects of market volatilities on Xtrackers 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 Xtrackers with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and BNP Paribas.
Diversification Opportunities for Xtrackers and BNP Paribas
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and BNP is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II 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 Xtrackers 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 Xtrackers II 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 Xtrackers i.e., Xtrackers and BNP Paribas go up and down completely randomly.
Pair Corralation between Xtrackers and BNP Paribas
Assuming the 90 days trading horizon Xtrackers II is expected to under-perform the BNP Paribas. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 2.0 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 Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Xtrackers II vs. BNP Paribas Easy
Performance |
| Timeline |
| Xtrackers II |
| BNP Paribas Easy |
Xtrackers and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and BNP Paribas
The main advantage of trading using opposite Xtrackers and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers 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.| Xtrackers vs. UBS Fund Solutions | Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. Vanguard Funds Public |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |