Correlation Between BNPP EHY and BNPP Easy
Can any of the company-specific risk be diversified away by investing in both BNPP EHY and BNPP Easy 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 EHY and BNPP Easy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNPP EHY SRI and BNPP Easy Next, you can compare the effects of market volatilities on BNPP EHY and BNPP Easy 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 EHY with a short position of BNPP Easy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNPP EHY and BNPP Easy.
Diversification Opportunities for BNPP EHY and BNPP Easy
Pay attention - limited upside
The 3 months correlation between BNPP and BNPP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNPP EHY SRI and BNPP Easy Next in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNPP Easy Next and BNPP EHY 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 EHY SRI are associated (or correlated) with BNPP Easy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNPP Easy Next has no effect on the direction of BNPP EHY i.e., BNPP EHY and BNPP Easy go up and down completely randomly.
Pair Corralation between BNPP EHY and BNPP Easy
If you would invest 1,051 in BNPP EHY SRI on October 8, 2024 and sell it today you would earn a total of 14.00 from holding BNPP EHY SRI or generate 1.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BNPP EHY SRI vs. BNPP Easy Next
Performance |
Timeline |
BNPP EHY SRI |
BNPP Easy Next |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNPP EHY and BNPP Easy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNPP EHY and BNPP Easy
The main advantage of trading using opposite BNPP EHY and BNPP Easy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNPP EHY position performs unexpectedly, BNPP Easy 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 BNPP Easy will offset losses from the drop in BNPP Easy's long position.BNPP EHY vs. BNPP BONDSRI ETF | BNPP EHY vs. BNPP LC EURPAB | BNPP EHY vs. BNPP EHY SRI | BNPP EHY vs. BNPP Greenbond ETF |
BNPP Easy vs. BNPP BONDSRI ETF | BNPP Easy vs. BNPP LC EURPAB | BNPP Easy vs. BNPP EHY SRI | BNPP Easy vs. BNPP Greenbond ETF |
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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