Correlation Between BNP Paribas and Commencement Bancorp
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Commencement Bancorp 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 Commencement Bancorp 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 Commencement Bancorp, you can compare the effects of market volatilities on BNP Paribas and Commencement Bancorp 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 Commencement Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Commencement Bancorp.
Diversification Opportunities for BNP Paribas and Commencement Bancorp
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNP and Commencement is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Commencement Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commencement Bancorp 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 Commencement Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commencement Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and Commencement Bancorp go up and down completely randomly.
Pair Corralation between BNP Paribas and Commencement Bancorp
Assuming the 90 days horizon BNP Paribas is expected to generate 3.64 times less return on investment than Commencement Bancorp. In addition to that, BNP Paribas is 4.99 times more volatile than Commencement Bancorp. It trades about 0.01 of its total potential returns per unit of risk. Commencement Bancorp is currently generating about 0.1 per unit of volatility. If you would invest 1,255 in Commencement Bancorp on October 11, 2024 and sell it today you would earn a total of 10.00 from holding Commencement Bancorp or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas SA vs. Commencement Bancorp
Performance |
| Timeline |
| BNP Paribas SA |
| Commencement Bancorp |
BNP Paribas and Commencement Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Commencement Bancorp
The main advantage of trading using opposite BNP Paribas and Commencement Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Commencement Bancorp 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 Commencement Bancorp will offset losses from the drop in Commencement Bancorp's long position.| BNP Paribas vs. Lloyds Banking Group | BNP Paribas vs. Bank of Hawaii | BNP Paribas vs. Deutsche Bank AG | BNP Paribas vs. PNC Financial Services |
| Commencement Bancorp vs. Summit Bank Group | Commencement Bancorp vs. Pacific West Bancorp | Commencement Bancorp vs. Savi Financial | Commencement Bancorp vs. MNB Holdings Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |