Correlation Between Crédit Agricole and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole 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 Crédit Agricole and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crdit Agricole SA and BNP Paribas SA, you can compare the effects of market volatilities on Crédit Agricole 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 Crédit Agricole with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and BNP Paribas.
Diversification Opportunities for Crédit Agricole and BNP Paribas
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crédit and BNP is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA 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 Crédit Agricole 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 Crdit Agricole SA 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 Crédit Agricole i.e., Crédit Agricole and BNP Paribas go up and down completely randomly.
Pair Corralation between Crédit Agricole and BNP Paribas
Assuming the 90 days horizon Crdit Agricole SA is expected to generate 0.99 times more return on investment than BNP Paribas. However, Crdit Agricole SA is 1.01 times less risky than BNP Paribas. It trades about 0.12 of its potential returns per unit of risk. BNP Paribas SA is currently generating about 0.09 per unit of risk. If you would invest 1,322 in Crdit Agricole SA on October 14, 2024 and sell it today you would earn a total of 29.00 from holding Crdit Agricole SA or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crdit Agricole SA vs. BNP Paribas SA
Performance |
| Timeline |
| Crdit Agricole SA |
| BNP Paribas SA |
Crédit Agricole and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and BNP Paribas
The main advantage of trading using opposite Crédit Agricole and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole 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.| Crédit Agricole vs. OBSERVE MEDICAL ASA | Crédit Agricole vs. YOOMA WELLNESS INC | Crédit Agricole vs. Japan Tobacco | Crédit Agricole vs. CLOVER HEALTH INV |
| BNP Paribas vs. EAT WELL INVESTMENT | BNP Paribas vs. Japan Asia Investment | BNP Paribas vs. TOREX SEMICONDUCTOR LTD | BNP Paribas vs. Magnachip Semiconductor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |