Correlation Between BNP Paribas and Logintrade
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on BNP Paribas and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Logintrade.
Diversification Opportunities for BNP Paribas and Logintrade
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BNP and Logintrade is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Bank and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of BNP Paribas i.e., BNP Paribas and Logintrade go up and down completely randomly.
Pair Corralation between BNP Paribas and Logintrade
Assuming the 90 days trading horizon BNP Paribas Bank is expected to under-perform the Logintrade. But the stock apears to be less risky and, when comparing its historical volatility, BNP Paribas Bank is 2.26 times less risky than Logintrade. The stock trades about -0.25 of its potential returns per unit of risk. The Logintrade SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Logintrade SA on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Logintrade SA or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
BNP Paribas Bank vs. Logintrade SA
Performance |
| Timeline |
| BNP Paribas Bank |
| Logintrade SA |
BNP Paribas and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Logintrade
The main advantage of trading using opposite BNP Paribas and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.The idea behind BNP Paribas Bank and Logintrade SA 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.| Logintrade vs. GreenX Metals | Logintrade vs. Baked Games SA | Logintrade vs. SOFTWARE MANSION SPOLKA | Logintrade vs. True Games Syndicate |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |