Correlation Between Intel and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and BNP Paribas SA, you can compare the effects of market volatilities on Intel 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 Intel with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BNP Paribas.
Diversification Opportunities for Intel and BNP Paribas
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and BNP is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and BNP Paribas go up and down completely randomly.
Pair Corralation between Intel and BNP Paribas
Given the investment horizon of 90 days Intel is expected to generate 1.99 times more return on investment than BNP Paribas. However, Intel is 1.99 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 -0.1 per unit of risk. If you would invest 2,013 in Intel on August 24, 2024 and sell it today you would earn a total of 431.00 from holding Intel or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Intel vs. BNP Paribas SA
Performance |
| Timeline |
| Intel |
| BNP Paribas SA |
Intel and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BNP Paribas
The main advantage of trading using opposite Intel and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. Eshallgo Class A | Intel vs. Amtech Systems | Intel vs. Gold Fields Ltd | Intel vs. Aegean Airlines SA |
| BNP Paribas vs. Societe Generale ADR | BNP Paribas vs. Intesa Sanpaolo SpA | BNP Paribas vs. Commerzbank AG PK | BNP Paribas vs. Swedbank AB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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