Correlation Between Uwharrie Capital and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital 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 Uwharrie Capital and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and BNP Paribas SA, you can compare the effects of market volatilities on Uwharrie Capital 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 Uwharrie Capital with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and BNP Paribas.
Diversification Opportunities for Uwharrie Capital and BNP Paribas
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Uwharrie and BNP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp 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 Uwharrie Capital 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 Uwharrie Capital Corp 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 Uwharrie Capital i.e., Uwharrie Capital and BNP Paribas go up and down completely randomly.
Pair Corralation between Uwharrie Capital and BNP Paribas
Given the investment horizon of 90 days Uwharrie Capital is expected to generate 1.8 times less return on investment than BNP Paribas. But when comparing it to its historical volatility, Uwharrie Capital Corp is 1.79 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 4,938 in BNP Paribas SA on September 3, 2024 and sell it today you would earn a total of 1,098 from holding BNP Paribas SA or generate 22.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.42% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. BNP Paribas SA
Performance |
| Timeline |
| Uwharrie Capital Corp |
| BNP Paribas SA |
Uwharrie Capital and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and BNP Paribas
The main advantage of trading using opposite Uwharrie Capital and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital 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.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| BNP Paribas vs. Lloyds Banking Group | BNP Paribas vs. Bank of Hawaii | BNP Paribas vs. Deutsche Bank AG | BNP Paribas vs. PNC Financial Services |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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