Correlation Between BNP Paribas and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Kogeneracja 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 Kogeneracja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas Bank and Kogeneracja SA, you can compare the effects of market volatilities on BNP Paribas and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Kogeneracja.
Diversification Opportunities for BNP Paribas and Kogeneracja
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BNP and Kogeneracja is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Bank and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja 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 Bank are associated (or correlated) with Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of BNP Paribas i.e., BNP Paribas and Kogeneracja go up and down completely randomly.
Pair Corralation between BNP Paribas and Kogeneracja
Assuming the 90 days trading horizon BNP Paribas Bank is expected to generate 0.6 times more return on investment than Kogeneracja. However, BNP Paribas Bank is 1.66 times less risky than Kogeneracja. It trades about -0.26 of its potential returns per unit of risk. Kogeneracja SA is currently generating about -0.3 per unit of risk. If you would invest 9,120 in BNP Paribas Bank on September 14, 2024 and sell it today you would lose (820.00) from holding BNP Paribas Bank or give up 8.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas Bank vs. Kogeneracja SA
Performance |
| Timeline |
| BNP Paribas Bank |
| Kogeneracja SA |
BNP Paribas and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Kogeneracja
The main advantage of trading using opposite BNP Paribas and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| BNP Paribas vs. Carlson Investments SA | BNP Paribas vs. MCI Management SA | BNP Paribas vs. Varsav Game Studios | BNP Paribas vs. Live Motion Games |
| Kogeneracja vs. BNP Paribas Bank | Kogeneracja vs. MCI Management SA | Kogeneracja vs. Medicofarma Biotech SA | Kogeneracja vs. PLAYWAY SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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