Correlation Between Live Motion and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Live Motion 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 Live Motion and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and BNP Paribas Bank, you can compare the effects of market volatilities on Live Motion 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 Live Motion with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and BNP Paribas.
Diversification Opportunities for Live Motion and BNP Paribas
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Live and BNP is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games 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 Live Motion 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 Live Motion Games 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 Live Motion i.e., Live Motion and BNP Paribas go up and down completely randomly.
Pair Corralation between Live Motion and BNP Paribas
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the BNP Paribas. In addition to that, Live Motion is 2.23 times more volatile than BNP Paribas Bank. It trades about -0.52 of its total potential returns per unit of risk. BNP Paribas Bank is currently generating about -0.26 per unit of volatility. If you would invest 9,120 in BNP Paribas Bank on September 14, 2024 and sell it today you would lose (820.00) from holding BNP Paribas Bank or give up 8.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Motion Games vs. BNP Paribas Bank
Performance |
| Timeline |
| Live Motion Games |
| BNP Paribas Bank |
Live Motion and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and BNP Paribas
The main advantage of trading using opposite Live Motion and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion 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.| Live Motion vs. Creativeforge Games SA | Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Asseco South Eastern |
| BNP Paribas vs. Carlson Investments SA | BNP Paribas vs. MCI Management SA | BNP Paribas vs. Varsav Game Studios | BNP Paribas vs. Live Motion Games |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |