Correlation Between Fuji Media and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Fuji Media 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 Fuji Media and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and BNP Paribas SA, you can compare the effects of market volatilities on Fuji Media 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 Fuji Media with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and BNP Paribas.
Diversification Opportunities for Fuji Media and BNP Paribas
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuji and BNP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings 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 Fuji Media 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 Fuji Media Holdings 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 Fuji Media i.e., Fuji Media and BNP Paribas go up and down completely randomly.
Pair Corralation between Fuji Media and BNP Paribas
Assuming the 90 days trading horizon Fuji Media Holdings is expected to generate 3.2 times more return on investment than BNP Paribas. However, Fuji Media is 3.2 times more volatile than BNP Paribas SA. It trades about 0.38 of its potential returns per unit of risk. BNP Paribas SA is currently generating about 0.42 per unit of risk. If you would invest 1,040 in Fuji Media Holdings on November 2, 2024 and sell it today you would earn a total of 360.00 from holding Fuji Media Holdings or generate 34.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. BNP Paribas SA
Performance |
| Timeline |
| Fuji Media Holdings |
| BNP Paribas SA |
Fuji Media and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and BNP Paribas
The main advantage of trading using opposite Fuji Media and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media 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.| Fuji Media vs. HOME DEPOT | Fuji Media vs. KENEDIX OFFICE INV | Fuji Media vs. Coeur Mining | Fuji Media vs. MCEWEN MINING INC |
| BNP Paribas vs. Fuji Media Holdings | BNP Paribas vs. Warner Music Group | BNP Paribas vs. PROSIEBENSAT1 MEDIADR4 | BNP Paribas vs. SQUIRREL MEDIA SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |