Correlation Between Examobile and BNP Paribas

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Can any of the company-specific risk be diversified away by investing in both Examobile 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 Examobile and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and BNP Paribas Bank, you can compare the effects of market volatilities on Examobile 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 Examobile with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and BNP Paribas.

Diversification Opportunities for Examobile and BNP Paribas

ExamobileBNPDiversified AwayExamobileBNPDiversified Away100%
-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Examobile and BNP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and BNP Paribas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Bank and Examobile 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 Examobile SA 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 Bank has no effect on the direction of Examobile i.e., Examobile and BNP Paribas go up and down completely randomly.

Pair Corralation between Examobile and BNP Paribas

Assuming the 90 days trading horizon Examobile SA is expected to under-perform the BNP Paribas. In addition to that, Examobile is 1.52 times more volatile than BNP Paribas Bank. It trades about -0.05 of its total potential returns per unit of risk. BNP Paribas Bank is currently generating about 0.08 per unit of volatility. If you would invest  4,796  in BNP Paribas Bank on November 20, 2024 and sell it today you would earn a total of  4,624  from holding BNP Paribas Bank or generate 96.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy68.57%
ValuesDaily Returns

Examobile SA  vs.  BNP Paribas Bank

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020
JavaScript chart by amCharts 3.21.15EXA BNP
       Timeline  
Examobile SA 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Examobile reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15SepOctNovDecJanFebOctNovDecJanFeb33.544.5
BNP Paribas Bank 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BNP Paribas Bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, BNP Paribas may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb80859095

Examobile and BNP Paribas Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.79-11.83-7.86-3.90.053.97.9311.9615.9920.02 0.050.100.15
JavaScript chart by amCharts 3.21.15EXA BNP
       Returns  

Pair Trading with Examobile and BNP Paribas

The main advantage of trading using opposite Examobile and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile 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.
The idea behind Examobile SA and BNP Paribas Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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