Correlation Between BNP Paribas and Oregon Bancorp
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Oregon 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 Oregon 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 Oregon Bancorp, you can compare the effects of market volatilities on BNP Paribas and Oregon 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 Oregon Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Oregon Bancorp.
Diversification Opportunities for BNP Paribas and Oregon Bancorp
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between BNP and Oregon is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Oregon Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oregon 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 Oregon Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oregon Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and Oregon Bancorp go up and down completely randomly.
Pair Corralation between BNP Paribas and Oregon Bancorp
Assuming the 90 days horizon BNP Paribas SA is expected to generate 1.0 times more return on investment than Oregon Bancorp. However, BNP Paribas is 1.0 times more volatile than Oregon Bancorp. It trades about 0.37 of its potential returns per unit of risk. Oregon Bancorp is currently generating about -0.2 per unit of risk. If you would invest 3,050 in BNP Paribas SA on October 28, 2024 and sell it today you would earn a total of 292.00 from holding BNP Paribas SA or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas SA vs. Oregon Bancorp
Performance |
| Timeline |
| BNP Paribas SA |
| Oregon Bancorp |
BNP Paribas and Oregon Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Oregon Bancorp
The main advantage of trading using opposite BNP Paribas and Oregon Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Oregon 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 Oregon Bancorp will offset losses from the drop in Oregon 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 |
| Oregon Bancorp vs. National Capital Bank | Oregon Bancorp vs. Community Heritage Financial | Oregon Bancorp vs. Citizens Financial Corp | Oregon Bancorp vs. First Community Financial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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