Correlation Between TEN SQUARE and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and BNP Paribas Bank, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and BNP Paribas.
Diversification Opportunities for TEN SQUARE and BNP Paribas
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TEN and BNP is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE i.e., TEN SQUARE and BNP Paribas go up and down completely randomly.
Pair Corralation between TEN SQUARE and BNP Paribas
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to generate 0.86 times more return on investment than BNP Paribas. However, TEN SQUARE GAMES is 1.16 times less risky than BNP Paribas. It trades about -0.03 of its potential returns per unit of risk. BNP Paribas Bank is currently generating about -0.04 per unit of risk. If you would invest 8,680 in TEN SQUARE GAMES on September 3, 2024 and sell it today you would lose (870.00) from holding TEN SQUARE GAMES or give up 10.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. BNP Paribas Bank
Performance |
| Timeline |
| TEN SQUARE GAMES |
| BNP Paribas Bank |
TEN SQUARE and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and BNP Paribas
The main advantage of trading using opposite TEN SQUARE and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. CI Games SA |
| BNP Paribas vs. UniCredit SpA | BNP Paribas vs. Santander Bank Polska | BNP Paribas vs. Bank Polska Kasa | BNP Paribas vs. Bank Handlowy w |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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