Correlation Between All In and BNP Paribas

Can any of the company-specific risk be diversified away by investing in both All In 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 All In and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All In Games and BNP Paribas Bank, you can compare the effects of market volatilities on All In 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 All In with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of All In and BNP Paribas.

Diversification Opportunities for All In and BNP Paribas

-0.61

Correlation Coefficient

All In  BNP Paribas

Excellent diversification

The 3 months correlation between All and BNP is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding All In 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 All In 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 All In 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 All In i.e., All In and BNP Paribas go up and down completely randomly.

Pair Corralation between All In and BNP Paribas

Assuming the 90 days trading horizon All In Games is expected to under-perform the BNP Paribas. In addition to that, All In is 1.98 times more volatile than BNP Paribas Bank. It trades about -0.05 of its total potential returns per unit of risk. BNP Paribas Bank is currently generating about 0.26 per unit of volatility. If you would invest  8,180  in BNP Paribas Bank on November 29, 2024 and sell it today you would earn a total of  1,970  from holding BNP Paribas Bank or generate 24.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

All In Games  vs.  BNP Paribas Bank

All In Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days All In Games has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

BNP Paribas Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BNP Paribas Bank are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, BNP Paribas reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with All In and BNP Paribas

The main advantage of trading using opposite All In and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All In 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.

The idea behind All In Games and BNP Paribas Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.