Correlation Between BNP Paribas and DNB ASA
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and DNB ASA 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 BNP Paribas and DNB ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas SA and DNB ASA, you can compare the effects of market volatilities on BNP Paribas and DNB ASA 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 BNP Paribas with a short position of DNB ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and DNB ASA.
Diversification Opportunities for BNP Paribas and DNB ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNP and DNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and DNB ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB ASA and BNP Paribas 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 BNP Paribas SA are associated (or correlated) with DNB ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB ASA has no effect on the direction of BNP Paribas i.e., BNP Paribas and DNB ASA go up and down completely randomly.
Pair Corralation between BNP Paribas and DNB ASA
If you would invest 3,357 in BNP Paribas SA on January 19, 2024 and sell it today you would earn a total of 119.00 from holding BNP Paribas SA or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BNP Paribas SA vs. DNB ASA
Performance |
| Timeline |
| BNP Paribas SA |
| DNB ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNP Paribas and DNB ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and DNB ASA
The main advantage of trading using opposite BNP Paribas and DNB ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, DNB ASA 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 DNB ASA will offset losses from the drop in DNB ASA's long position.| BNP Paribas vs. Pfizer Inc | BNP Paribas vs. Heartland Financial USA | BNP Paribas vs. Conflux Network | BNP Paribas vs. Citigroup Capital XIII |
| DNB ASA vs. RBC Bearings Incorporated | DNB ASA vs. LGI Homes | DNB ASA vs. MI Homes | DNB ASA vs. Sharplink Gaming |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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