Correlation Between BNP Paribas and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Crédit Agricole 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 Crédit Agricole 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 Crdit Agricole SA, you can compare the effects of market volatilities on BNP Paribas and Crédit Agricole 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 Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Crédit Agricole.
Diversification Opportunities for BNP Paribas and Crédit Agricole
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BNP and Crédit is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA 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 Crédit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of BNP Paribas i.e., BNP Paribas and Crédit Agricole go up and down completely randomly.
Pair Corralation between BNP Paribas and Crédit Agricole
Assuming the 90 days horizon BNP Paribas is expected to generate 2.51 times less return on investment than Crédit Agricole. In addition to that, BNP Paribas is 1.1 times more volatile than Crdit Agricole SA. It trades about 0.02 of its total potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.06 per unit of volatility. If you would invest 906.00 in Crdit Agricole SA on October 15, 2024 and sell it today you would earn a total of 445.00 from holding Crdit Agricole SA or generate 49.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas SA vs. Crdit Agricole SA
Performance |
| Timeline |
| BNP Paribas SA |
| Crdit Agricole SA |
BNP Paribas and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Crédit Agricole
The main advantage of trading using opposite BNP Paribas and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Crédit Agricole 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 Crédit Agricole will offset losses from the drop in Crédit Agricole's long position.| BNP Paribas vs. UNIQA INSURANCE GR | BNP Paribas vs. VULCAN MATERIALS | BNP Paribas vs. Japan Post Insurance | BNP Paribas vs. Universal Insurance Holdings |
| Crédit Agricole vs. Sterling Construction | Crédit Agricole vs. AM EAGLE OUTFITTERS | Crédit Agricole vs. Daito Trust Construction | Crédit Agricole vs. Hanison Construction Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |