Correlation Between IShares VII and BNP Paribas
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By analyzing existing cross correlation between iShares VII PLC and BNP Paribas Easy, you can compare the effects of market volatilities on IShares VII 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 IShares VII with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and BNP Paribas.
Diversification Opportunities for IShares VII and BNP Paribas
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and BNP is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC 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 IShares VII 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 iShares VII PLC 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 IShares VII i.e., IShares VII and BNP Paribas go up and down completely randomly.
Pair Corralation between IShares VII and BNP Paribas
Assuming the 90 days trading horizon iShares VII PLC is expected to generate 1.42 times more return on investment than BNP Paribas. However, IShares VII is 1.42 times more volatile than BNP Paribas Easy. It trades about 0.09 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about -0.03 per unit of risk. If you would invest 23,320 in iShares VII PLC on September 15, 2024 and sell it today you would earn a total of 1,575 from holding iShares VII PLC or generate 6.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares VII PLC vs. BNP Paribas Easy
Performance |
Timeline |
iShares VII PLC |
BNP Paribas Easy |
IShares VII and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares VII and BNP Paribas
The main advantage of trading using opposite IShares VII and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII 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.IShares VII vs. UBS Fund Solutions | IShares VII vs. Xtrackers II | IShares VII vs. Xtrackers Nikkei 225 | IShares VII vs. SPDR Gold Shares |
BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas vs. iShares VII PLC |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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