Correlation Between Komercní Banka and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Komercní Banka 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 Komercní Banka and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercn banka as and BNP Paribas SA, you can compare the effects of market volatilities on Komercní Banka 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 Komercní Banka with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercní Banka and BNP Paribas.
Diversification Opportunities for Komercní Banka and BNP Paribas
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Komercní and BNP is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Komercn banka as 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 Komercní Banka 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 Komercn banka as 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 Komercní Banka i.e., Komercní Banka and BNP Paribas go up and down completely randomly.
Pair Corralation between Komercní Banka and BNP Paribas
Assuming the 90 days trading horizon Komercní Banka is expected to generate 1.0 times less return on investment than BNP Paribas. But when comparing it to its historical volatility, Komercn banka as is 1.03 times less risky than BNP Paribas. It trades about 0.03 of its potential returns per unit of risk. BNP Paribas SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,689 in BNP Paribas SA on September 3, 2024 and sell it today you would earn a total of 978.00 from holding BNP Paribas SA or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercn banka as vs. BNP Paribas SA
Performance |
| Timeline |
| Komercn banka as |
| BNP Paribas SA |
Komercní Banka and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercní Banka and BNP Paribas
The main advantage of trading using opposite Komercní Banka and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercní Banka 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.| Komercní Banka vs. Superior Plus Corp | Komercní Banka vs. NMI Holdings | Komercní Banka vs. Origin Agritech | Komercní Banka vs. SIVERS SEMICONDUCTORS AB |
| BNP Paribas vs. Superior Plus Corp | BNP Paribas vs. NMI Holdings | BNP Paribas vs. Origin Agritech | BNP Paribas vs. SIVERS SEMICONDUCTORS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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