Correlation Between BNP Paribas and CMUV Bancorp
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and CMUV 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 CMUV 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 CMUV Bancorp, you can compare the effects of market volatilities on BNP Paribas and CMUV 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 CMUV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and CMUV Bancorp.
Diversification Opportunities for BNP Paribas and CMUV Bancorp
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BNP and CMUV is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and CMUV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMUV 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 CMUV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMUV Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and CMUV Bancorp go up and down completely randomly.
Pair Corralation between BNP Paribas and CMUV Bancorp
Assuming the 90 days horizon BNP Paribas is expected to generate 3.54 times less return on investment than CMUV Bancorp. But when comparing it to its historical volatility, BNP Paribas SA is 1.39 times less risky than CMUV Bancorp. It trades about 0.02 of its potential returns per unit of risk. CMUV Bancorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,550 in CMUV Bancorp on October 24, 2024 and sell it today you would earn a total of 650.00 from holding CMUV Bancorp or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.7% |
| Values | Daily Returns |
BNP Paribas SA vs. CMUV Bancorp
Performance |
| Timeline |
| BNP Paribas SA |
| CMUV Bancorp |
BNP Paribas and CMUV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and CMUV Bancorp
The main advantage of trading using opposite BNP Paribas and CMUV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, CMUV 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 CMUV Bancorp will offset losses from the drop in CMUV 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 |
| CMUV Bancorp vs. Pioneer Bankcorp | CMUV Bancorp vs. Summit Bancshares | CMUV Bancorp vs. Liberty Northwest Bancorp | CMUV Bancorp vs. First Community |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |