Correlation Between BNP Paribas and Tri-County Financial
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Tri-County Financial 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 Tri-County Financial 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 Tri County Financial Group, you can compare the effects of market volatilities on BNP Paribas and Tri-County Financial 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 Tri-County Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Tri-County Financial.
Diversification Opportunities for BNP Paribas and Tri-County Financial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between BNP and Tri-County is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Tri County Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri County Financial 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 Tri-County Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri County Financial has no effect on the direction of BNP Paribas i.e., BNP Paribas and Tri-County Financial go up and down completely randomly.
Pair Corralation between BNP Paribas and Tri-County Financial
Assuming the 90 days horizon BNP Paribas SA is expected to generate 1.05 times more return on investment than Tri-County Financial. However, BNP Paribas is 1.05 times more volatile than Tri County Financial Group. It trades about 0.02 of its potential returns per unit of risk. Tri County Financial Group is currently generating about 0.0 per unit of risk. If you would invest 2,974 in BNP Paribas SA on November 2, 2024 and sell it today you would earn a total of 436.00 from holding BNP Paribas SA or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.06% |
| Values | Daily Returns |
BNP Paribas SA vs. Tri County Financial Group
Performance |
| Timeline |
| BNP Paribas SA |
| Tri County Financial |
BNP Paribas and Tri-County Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Tri-County Financial
The main advantage of trading using opposite BNP Paribas and Tri-County Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Tri-County Financial 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 Tri-County Financial will offset losses from the drop in Tri-County Financial'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 |
| Tri-County Financial vs. Taylor Calvin B | Tri-County Financial vs. United Bancorporation of | Tri-County Financial vs. Virginia National Bankshares | Tri-County Financial vs. Lyons Bancorp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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