Correlation Between BNP Paribas and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Bangkok Bank 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 Bangkok Bank 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 Bangkok Bank PCL, you can compare the effects of market volatilities on BNP Paribas and Bangkok Bank 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 Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Bangkok Bank.
Diversification Opportunities for BNP Paribas and Bangkok Bank
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BNP and Bangkok is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Bangkok Bank PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank PCL 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 Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank PCL has no effect on the direction of BNP Paribas i.e., BNP Paribas and Bangkok Bank go up and down completely randomly.
Pair Corralation between BNP Paribas and Bangkok Bank
Assuming the 90 days horizon BNP Paribas SA is expected to generate 0.35 times more return on investment than Bangkok Bank. However, BNP Paribas SA is 2.83 times less risky than Bangkok Bank. It trades about 0.33 of its potential returns per unit of risk. Bangkok Bank PCL is currently generating about 0.06 per unit of risk. If you would invest 3,377 in BNP Paribas SA on November 29, 2024 and sell it today you would earn a total of 416.00 from holding BNP Paribas SA or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas SA vs. Bangkok Bank PCL
Performance |
| Timeline |
| BNP Paribas SA |
| Bangkok Bank PCL |
BNP Paribas and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Bangkok Bank
The main advantage of trading using opposite BNP Paribas and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| BNP Paribas vs. Societe Generale ADR | BNP Paribas vs. Intesa Sanpaolo SpA | BNP Paribas vs. Commerzbank AG PK | BNP Paribas vs. Swedbank AB |
| Bangkok Bank vs. Partners Bank of | Bangkok Bank vs. BOC Hong Kong | Bangkok Bank vs. China Merchants Bank | Bangkok Bank vs. Bank of the |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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