Correlation Between Baldwin Lyons and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Baldwin Lyons 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 Baldwin Lyons and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baldwin Lyons and BNP Paribas SA, you can compare the effects of market volatilities on Baldwin Lyons 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 Baldwin Lyons with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baldwin Lyons and BNP Paribas.
Diversification Opportunities for Baldwin Lyons and BNP Paribas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baldwin and BNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baldwin Lyons 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 Baldwin Lyons 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 Baldwin Lyons 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 Baldwin Lyons i.e., Baldwin Lyons and BNP Paribas go up and down completely randomly.
Pair Corralation between Baldwin Lyons and BNP Paribas
If you would invest 6,012 in BNP Paribas SA on December 29, 2023 and sell it today you would earn a total of 988.00 from holding BNP Paribas SA or generate 16.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Baldwin Lyons vs. BNP Paribas SA
Performance |
Timeline |
Baldwin Lyons |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
BNP Paribas SA |
Baldwin Lyons and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baldwin Lyons and BNP Paribas
The main advantage of trading using opposite Baldwin Lyons and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baldwin Lyons 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.Baldwin Lyons vs. Eastern Co | Baldwin Lyons vs. Hudson Pacific Properties | Baldwin Lyons vs. Teleflex Incorporated | Baldwin Lyons vs. Arcimoto |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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