Correlation Between Xtrackers and BNP Paribas
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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
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xtrackers and BNP is 0.14. 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 generate 1.07 times more return on investment than BNP Paribas. However, Xtrackers is 1.07 times more volatile than BNP Paribas Easy. It trades about 0.07 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.02 per unit of risk. If you would invest 734.00 in Xtrackers II on September 5, 2024 and sell it today you would earn a total of 52.00 from holding Xtrackers II or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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