Correlation Between Multi Units and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Multi Units 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 Multi Units and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units Luxembourg and BNP Paribas Easy, you can compare the effects of market volatilities on Multi Units 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 Multi Units with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and BNP Paribas.
Diversification Opportunities for Multi Units and BNP Paribas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and BNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg 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 Multi Units 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 Multi Units Luxembourg 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 Multi Units i.e., Multi Units and BNP Paribas go up and down completely randomly.
Pair Corralation between Multi Units and BNP Paribas
If you would invest 648.00 in BNP Paribas Easy on November 2, 2024 and sell it today you would earn a total of 17.00 from holding BNP Paribas Easy or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Multi Units Luxembourg vs. BNP Paribas Easy
Performance |
| Timeline |
| Multi Units Luxembourg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BNP Paribas Easy |
Multi Units and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and BNP Paribas
The main advantage of trading using opposite Multi Units and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units 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.| Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units France | Multi Units vs. Multi Units Luxembourg |
| BNP Paribas vs. BNP PARIBAS EASY | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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