Correlation Between BNP Paribas and Peak Bancorp
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Peak 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 Peak 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 Peak Bancorp, you can compare the effects of market volatilities on BNP Paribas and Peak 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 Peak Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Peak Bancorp.
Diversification Opportunities for BNP Paribas and Peak Bancorp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BNP and Peak is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Peak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak 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 Peak Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and Peak Bancorp go up and down completely randomly.
Pair Corralation between BNP Paribas and Peak Bancorp
Assuming the 90 days horizon BNP Paribas SA is expected to generate 0.66 times more return on investment than Peak Bancorp. However, BNP Paribas SA is 1.52 times less risky than Peak Bancorp. It trades about 0.02 of its potential returns per unit of risk. Peak Bancorp is currently generating about -0.01 per unit of risk. If you would invest 2,902 in BNP Paribas SA on September 12, 2024 and sell it today you would earn a total of 253.00 from holding BNP Paribas SA or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 6.7% |
| Values | Daily Returns |
BNP Paribas SA vs. Peak Bancorp
Performance |
| Timeline |
| BNP Paribas SA |
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNP Paribas and Peak Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Peak Bancorp
The main advantage of trading using opposite BNP Paribas and Peak Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Peak 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 Peak Bancorp will offset losses from the drop in Peak 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 |
| Peak Bancorp vs. MVB Financial Corp | Peak Bancorp vs. Finward Bancorp | Peak Bancorp vs. First Community | Peak Bancorp vs. LINKBANCORP |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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