Correlation Between BNP Paribas and WisdomTree Issuer
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By analyzing existing cross correlation between BNP Paribas Easy and WisdomTree Issuer ICAV, you can compare the effects of market volatilities on BNP Paribas and WisdomTree Issuer 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 WisdomTree Issuer. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and WisdomTree Issuer.
Diversification Opportunities for BNP Paribas and WisdomTree Issuer
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BNP and WisdomTree is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy and WisdomTree Issuer ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Issuer ICAV 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 WisdomTree Issuer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Issuer ICAV has no effect on the direction of BNP Paribas i.e., BNP Paribas and WisdomTree Issuer go up and down completely randomly.
Pair Corralation between BNP Paribas and WisdomTree Issuer
Assuming the 90 days trading horizon BNP Paribas Easy is expected to generate 0.7 times more return on investment than WisdomTree Issuer. However, BNP Paribas Easy is 1.43 times less risky than WisdomTree Issuer. It trades about 0.08 of its potential returns per unit of risk. WisdomTree Issuer ICAV is currently generating about 0.02 per unit of risk. If you would invest 16,676 in BNP Paribas Easy on September 26, 2024 and sell it today you would earn a total of 5,004 from holding BNP Paribas Easy or generate 30.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BNP Paribas Easy vs. WisdomTree Issuer ICAV
Performance |
Timeline |
BNP Paribas Easy |
WisdomTree Issuer ICAV |
BNP Paribas and WisdomTree Issuer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNP Paribas and WisdomTree Issuer
The main advantage of trading using opposite BNP Paribas and WisdomTree Issuer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, WisdomTree Issuer 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 WisdomTree Issuer will offset losses from the drop in WisdomTree Issuer'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 |
WisdomTree Issuer vs. UBS Fund Solutions | WisdomTree Issuer vs. Xtrackers II | WisdomTree Issuer vs. Xtrackers Nikkei 225 | WisdomTree Issuer 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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