Correlation Between Gielda Papierow and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Gielda Papierow 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 Gielda Papierow and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gielda Papierow Wartosciowych and BNP Paribas Bank, you can compare the effects of market volatilities on Gielda Papierow 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 Gielda Papierow with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gielda Papierow and BNP Paribas.
Diversification Opportunities for Gielda Papierow and BNP Paribas
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gielda and BNP is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gielda Papierow Wartosciowych 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 Gielda Papierow 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 Gielda Papierow Wartosciowych 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 Gielda Papierow i.e., Gielda Papierow and BNP Paribas go up and down completely randomly.
Pair Corralation between Gielda Papierow and BNP Paribas
Assuming the 90 days trading horizon Gielda Papierow Wartosciowych is expected to generate 0.59 times more return on investment than BNP Paribas. However, Gielda Papierow Wartosciowych is 1.69 times less risky than BNP Paribas. It trades about -0.13 of its potential returns per unit of risk. BNP Paribas Bank is currently generating about -0.27 per unit of risk. If you would invest 4,265 in Gielda Papierow Wartosciowych on September 12, 2024 and sell it today you would lose (115.00) from holding Gielda Papierow Wartosciowych or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gielda Papierow Wartosciowych vs. BNP Paribas Bank
Performance |
| Timeline |
| Gielda Papierow Wart |
| BNP Paribas Bank |
Gielda Papierow and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gielda Papierow and BNP Paribas
The main advantage of trading using opposite Gielda Papierow and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gielda Papierow 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.| Gielda Papierow vs. MW Trade SA | Gielda Papierow vs. GreenX Metals | Gielda Papierow vs. Kool2play SA | Gielda Papierow vs. Quantum Software SA |
| BNP Paribas vs. UniCredit SpA | BNP Paribas vs. Santander Bank Polska | BNP Paribas vs. Bank Polska Kasa | BNP Paribas vs. ING Bank lski |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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