Correlation Between SBF 120 and BNP Paribas
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By analyzing existing cross correlation between SBF 120 and BNP Paribas Easy, you can compare the effects of market volatilities on SBF 120 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 SBF 120 with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and BNP Paribas.
Diversification Opportunities for SBF 120 and BNP Paribas
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and BNP is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy and SBF 120 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 SBF 120 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 Easy has no effect on the direction of SBF 120 i.e., SBF 120 and BNP Paribas go up and down completely randomly.
Pair Corralation between SBF 120 and BNP Paribas
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the BNP Paribas. In addition to that, SBF 120 is 1.21 times more volatile than BNP Paribas Easy. It trades about -0.08 of its total potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.01 per unit of volatility. If you would invest 14,324 in BNP Paribas Easy on September 1, 2024 and sell it today you would earn a total of 32.00 from holding BNP Paribas Easy or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.24% |
| Values | Daily Returns |
SBF 120 vs. BNP Paribas Easy
Performance |
| Timeline |
SBF 120 and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
BNP Paribas Easy
Pair trading matchups for BNP Paribas
Pair Trading with SBF 120 and BNP Paribas
The main advantage of trading using opposite SBF 120 and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 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.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Gaztransport Technigaz SAS |
| BNP Paribas vs. Lyxor MSCI China | BNP Paribas vs. Manitou BF SA | BNP Paribas vs. Ossiam Minimum Variance | BNP Paribas vs. Granite 3x LVMH |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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