Correlation Between BNP Paribas and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and TOTAL GABON 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 BNP Paribas and TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas SA and TOTAL GABON, you can compare the effects of market volatilities on BNP Paribas and TOTAL GABON 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 TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and TOTAL GABON.
Diversification Opportunities for BNP Paribas and TOTAL GABON
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNP and TOTAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON 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 SA are associated (or correlated) with TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of BNP Paribas i.e., BNP Paribas and TOTAL GABON go up and down completely randomly.
Pair Corralation between BNP Paribas and TOTAL GABON
If you would invest 15,750 in TOTAL GABON on September 12, 2024 and sell it today you would earn a total of 2,950 from holding TOTAL GABON or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BNP Paribas SA vs. TOTAL GABON
Performance |
| Timeline |
| BNP Paribas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TOTAL GABON |
BNP Paribas and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and TOTAL GABON
The main advantage of trading using opposite BNP Paribas and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, TOTAL GABON 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 TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| BNP Paribas vs. LEGACY IRON ORE | BNP Paribas vs. Caseys General Stores | BNP Paribas vs. BLUESCOPE STEEL | BNP Paribas vs. Vastned Retail NV |
| TOTAL GABON vs. TYSON FOODS A | TOTAL GABON vs. National Beverage Corp | TOTAL GABON vs. Food Life Companies | TOTAL GABON vs. SENECA FOODS A |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |