Correlation Between UBS Plc and BNP Paribas
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By analyzing existing cross correlation between UBS plc and BNP Paribas Easy, you can compare the effects of market volatilities on UBS Plc 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 UBS Plc with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Plc and BNP Paribas.
Diversification Opportunities for UBS Plc and BNP Paribas
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UBS and BNP is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding UBS 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 UBS Plc 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 UBS 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 UBS Plc i.e., UBS Plc and BNP Paribas go up and down completely randomly.
Pair Corralation between UBS Plc and BNP Paribas
Assuming the 90 days trading horizon UBS plc is expected to generate 1.05 times more return on investment than BNP Paribas. However, UBS Plc is 1.05 times more volatile than BNP Paribas Easy. It trades about 0.0 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about -0.31 per unit of risk. If you would invest 9,229 in UBS plc on September 25, 2024 and sell it today you would lose (5.00) from holding UBS plc or give up 0.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
UBS plc vs. BNP Paribas Easy
Performance |
Timeline |
UBS plc |
BNP Paribas Easy |
UBS Plc and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Plc and BNP Paribas
The main advantage of trading using opposite UBS Plc and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Plc 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.UBS Plc vs. UBS Fund Solutions | UBS Plc vs. Xtrackers II | UBS Plc vs. Xtrackers Nikkei 225 | UBS Plc vs. iShares VII PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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