Correlation Between BNP Paribas and Leverage Shares
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By analyzing existing cross correlation between BNP Paribas Easy and Leverage Shares 3x, you can compare the effects of market volatilities on BNP Paribas and Leverage Shares 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 BNP Paribas with a short position of Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Leverage Shares.
Diversification Opportunities for BNP Paribas and Leverage Shares
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNP and Leverage is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x and BNP Paribas 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 BNP Paribas Easy are associated (or correlated) with Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of BNP Paribas i.e., BNP Paribas and Leverage Shares go up and down completely randomly.
Pair Corralation between BNP Paribas and Leverage Shares
Assuming the 90 days trading horizon BNP Paribas Easy is expected to generate 0.06 times more return on investment than Leverage Shares. However, BNP Paribas Easy is 17.34 times less risky than Leverage Shares. It trades about 0.15 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about -0.06 per unit of risk. If you would invest 20,130 in BNP Paribas Easy on September 26, 2024 and sell it today you would earn a total of 1,550 from holding BNP Paribas Easy or generate 7.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
BNP Paribas Easy vs. Leverage Shares 3x
Performance |
Timeline |
BNP Paribas Easy |
Leverage Shares 3x |
BNP Paribas and Leverage Shares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNP Paribas and Leverage Shares
The main advantage of trading using opposite BNP Paribas and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas vs. iShares VII PLC |
Leverage Shares vs. UBS Fund Solutions | Leverage Shares vs. Xtrackers II | Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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