Correlation Between Vastned Retail and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and BNP Paribas SA, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and BNP Paribas.
Diversification Opportunities for Vastned Retail and BNP Paribas
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vastned and BNP is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV 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 Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and BNP Paribas go up and down completely randomly.
Pair Corralation between Vastned Retail and BNP Paribas
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.79 times more return on investment than BNP Paribas. However, Vastned Retail NV is 1.27 times less risky than BNP Paribas. It trades about 1.03 of its potential returns per unit of risk. BNP Paribas SA is currently generating about 0.46 per unit of risk. If you would invest 2,080 in Vastned Retail NV on October 21, 2024 and sell it today you would earn a total of 80.00 from holding Vastned Retail NV or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.41% |
| Values | Daily Returns |
Vastned Retail NV vs. BNP Paribas SA
Performance |
| Timeline |
| Vastned Retail NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BNP Paribas SA |
Vastned Retail and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and BNP Paribas
The main advantage of trading using opposite Vastned Retail and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. MOLSON RS BEVERAGE | Vastned Retail vs. United Natural Foods | Vastned Retail vs. Lery Seafood Group | Vastned Retail vs. LIFEWAY FOODS |
| BNP Paribas vs. Gold Road Resources | BNP Paribas vs. Nishi Nippon Railroad Co | BNP Paribas vs. Singapore Reinsurance | BNP Paribas vs. Clean Energy Fuels |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |