Correlation Between Stradim Espace and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Stradim Espace 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 Stradim Espace and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stradim Espace Finances and BNP Paribas SA, you can compare the effects of market volatilities on Stradim Espace 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 Stradim Espace with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stradim Espace and BNP Paribas.
Diversification Opportunities for Stradim Espace and BNP Paribas
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stradim and BNP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Stradim Espace Finances 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 Stradim Espace 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 Stradim Espace Finances 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 Stradim Espace i.e., Stradim Espace and BNP Paribas go up and down completely randomly.
Pair Corralation between Stradim Espace and BNP Paribas
Assuming the 90 days trading horizon Stradim Espace Finances is expected to under-perform the BNP Paribas. In addition to that, Stradim Espace is 3.09 times more volatile than BNP Paribas SA. It trades about -0.04 of its total potential returns per unit of risk. BNP Paribas SA is currently generating about 0.04 per unit of volatility. If you would invest 5,698 in BNP Paribas SA on September 24, 2024 and sell it today you would earn a total of 50.00 from holding BNP Paribas SA or generate 0.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Stradim Espace Finances vs. BNP Paribas SA
Performance |
Timeline |
Stradim Espace Finances |
BNP Paribas SA |
Stradim Espace and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stradim Espace and BNP Paribas
The main advantage of trading using opposite Stradim Espace and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stradim Espace 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.Stradim Espace vs. TotalEnergies SE | Stradim Espace vs. LVMH Mot Hennessy | Stradim Espace vs. Christian Dior SE | Stradim Espace vs. BNP Paribas SA |
BNP Paribas vs. Societe Generale SA | BNP Paribas vs. Credit Agricole SA | BNP Paribas vs. AXA SA | BNP Paribas vs. Sanofi SA |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Bonds Directory Find actively traded corporate debentures issued by US companies |