Correlation Between Investment Friends and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Investment Friends 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 Investment Friends and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Friends Capital and BNP Paribas Bank, you can compare the effects of market volatilities on Investment Friends 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 Investment Friends with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and BNP Paribas.
Diversification Opportunities for Investment Friends and BNP Paribas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and BNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital 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 Investment Friends 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 Investment Friends Capital 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 Investment Friends i.e., Investment Friends and BNP Paribas go up and down completely randomly.
Pair Corralation between Investment Friends and BNP Paribas
If you would invest 530.00 in Investment Friends Capital on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Investment Friends Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Investment Friends Capital vs. BNP Paribas Bank
Performance |
| Timeline |
| Investment Friends |
| BNP Paribas Bank |
Investment Friends and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Friends and BNP Paribas
The main advantage of trading using opposite Investment Friends and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends 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.| Investment Friends vs. Saule Technologies SA | Investment Friends vs. Cloud Technologies SA | Investment Friends vs. SOFTWARE MANSION SPOLKA | Investment Friends vs. TEN SQUARE GAMES |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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