Correlation Between BNP Paribas and Vanguard FTSE
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By analyzing existing cross correlation between BNP Paribas Easy and Vanguard FTSE All World, you can compare the effects of market volatilities on BNP Paribas and Vanguard FTSE 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 Vanguard FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Vanguard FTSE.
Diversification Opportunities for BNP Paribas and Vanguard FTSE
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BNP and Vanguard is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and Vanguard FTSE All World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE All 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 Vanguard FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE All has no effect on the direction of BNP Paribas i.e., BNP Paribas and Vanguard FTSE go up and down completely randomly.
Pair Corralation between BNP Paribas and Vanguard FTSE
Assuming the 90 days trading horizon BNP Paribas Easy is expected to under-perform the Vanguard FTSE. But the etf apears to be less risky and, when comparing its historical volatility, BNP Paribas Easy is 1.19 times less risky than Vanguard FTSE. The etf trades about -0.31 of its potential returns per unit of risk. The Vanguard FTSE All World is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 13,330 in Vanguard FTSE All World on September 25, 2024 and sell it today you would lose (42.00) from holding Vanguard FTSE All World or give up 0.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BNP Paribas Easy vs. Vanguard FTSE All World
Performance |
Timeline |
BNP Paribas Easy |
Vanguard FTSE All |
BNP Paribas and Vanguard FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNP Paribas and Vanguard FTSE
The main advantage of trading using opposite BNP Paribas and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Vanguard FTSE 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 Vanguard FTSE will offset losses from the drop in Vanguard FTSE's 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 |
Vanguard FTSE vs. UBS Fund Solutions | Vanguard FTSE vs. Xtrackers II | Vanguard FTSE vs. Xtrackers Nikkei 225 | Vanguard FTSE 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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