Correlation Between BNP Paribas and CCCB Bancorp
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and CCCB 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 CCCB 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 CCCB Bancorp, you can compare the effects of market volatilities on BNP Paribas and CCCB 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 CCCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and CCCB Bancorp.
Diversification Opportunities for BNP Paribas and CCCB Bancorp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BNP and CCCB is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and CCCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCCB 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 CCCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCCB Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and CCCB Bancorp go up and down completely randomly.
Pair Corralation between BNP Paribas and CCCB Bancorp
Assuming the 90 days horizon BNP Paribas SA is expected to generate 0.45 times more return on investment than CCCB Bancorp. However, BNP Paribas SA is 2.2 times less risky than CCCB Bancorp. It trades about 0.04 of its potential returns per unit of risk. CCCB Bancorp is currently generating about 0.0 per unit of risk. If you would invest 2,400 in BNP Paribas SA on August 26, 2024 and sell it today you would earn a total of 661.00 from holding BNP Paribas SA or generate 27.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.92% |
| Values | Daily Returns |
BNP Paribas SA vs. CCCB Bancorp
Performance |
| Timeline |
| BNP Paribas SA |
| CCCB Bancorp |
BNP Paribas and CCCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and CCCB Bancorp
The main advantage of trading using opposite BNP Paribas and CCCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, CCCB 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 CCCB Bancorp will offset losses from the drop in CCCB Bancorp'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 |
| CCCB Bancorp vs. Citizens Bancorp Investment | CCCB Bancorp vs. Greenville Federal Financial | CCCB Bancorp vs. First Bankers Trustshares | CCCB Bancorp vs. CoastalSouth Bancshares |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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