Correlation Between Caseys General and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Caseys General and BNP Paribas 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 Caseys General and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and BNP Paribas SA, you can compare the effects of market volatilities on Caseys General and BNP Paribas 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 Caseys General with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and BNP Paribas.
Diversification Opportunities for Caseys General and BNP Paribas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caseys and BNP is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and BNP Paribas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas SA and Caseys General 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 Caseys General Stores are associated (or correlated) with BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas SA has no effect on the direction of Caseys General i.e., Caseys General and BNP Paribas go up and down completely randomly.
Pair Corralation between Caseys General and BNP Paribas
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 1.26 times more return on investment than BNP Paribas. However, Caseys General is 1.26 times more volatile than BNP Paribas SA. It trades about 0.11 of its potential returns per unit of risk. BNP Paribas SA is currently generating about 0.03 per unit of risk. If you would invest 22,428 in Caseys General Stores on September 12, 2024 and sell it today you would earn a total of 16,772 from holding Caseys General Stores or generate 74.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Caseys General Stores vs. BNP Paribas SA
Performance |
| Timeline |
| Caseys General Stores |
| BNP Paribas SA |
Caseys General and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and BNP Paribas
The main advantage of trading using opposite Caseys General and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| BNP Paribas vs. LEGACY IRON ORE | BNP Paribas vs. Caseys General Stores | BNP Paribas vs. BLUESCOPE STEEL | BNP Paribas vs. Vastned Retail NV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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