Correlation Between All In and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both All In and BNP Paribas at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining All In and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between All In Games and BNP Paribas Bank, you can compare the effects of market volatilities on All In 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 All In with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of All In and BNP Paribas.
Diversification Opportunities for All In and BNP Paribas
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between All and BNP is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding All In Games and BNP Paribas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Bank and All In 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 All In Games 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 Bank has no effect on the direction of All In i.e., All In and BNP Paribas go up and down completely randomly.
Pair Corralation between All In and BNP Paribas
Assuming the 90 days trading horizon All In Games is expected to generate 3.03 times more return on investment than BNP Paribas. However, All In is 3.03 times more volatile than BNP Paribas Bank. It trades about 0.06 of its potential returns per unit of risk. BNP Paribas Bank is currently generating about -0.17 per unit of risk. If you would invest 107.00 in All In Games on September 3, 2024 and sell it today you would earn a total of 12.00 from holding All In Games or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
All In Games vs. BNP Paribas Bank
Performance |
| Timeline |
| All In Games |
| BNP Paribas Bank |
All In and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with All In and BNP Paribas
The main advantage of trading using opposite All In and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All In 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.The idea behind All In Games and BNP Paribas Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BNP Paribas vs. UniCredit SpA | BNP Paribas vs. Santander Bank Polska | BNP Paribas vs. Bank Polska Kasa | BNP Paribas vs. Bank Handlowy w |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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