Correlation Between BNP Paribas and Sberbank
Can any of the company-specific risk be diversified away by investing in both BNP Paribas and Sberbank 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 Sberbank 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 Sberbank Of Russia, you can compare the effects of market volatilities on BNP Paribas and Sberbank 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 Sberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Sberbank.
Diversification Opportunities for BNP Paribas and Sberbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNP and Sberbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and Sberbank Of Russia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sberbank Of Russia 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 Sberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sberbank Of Russia has no effect on the direction of BNP Paribas i.e., BNP Paribas and Sberbank go up and down completely randomly.
Pair Corralation between BNP Paribas and Sberbank
If you would invest 3,481 in BNP Paribas SA on January 26, 2024 and sell it today you would earn a total of 169.00 from holding BNP Paribas SA or generate 4.85% 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. Sberbank Of Russia
Performance |
Timeline |
BNP Paribas SA |
Sberbank Of Russia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNP Paribas and Sberbank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNP Paribas and Sberbank
The main advantage of trading using opposite BNP Paribas and Sberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, Sberbank 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 Sberbank will offset losses from the drop in Sberbank's long position.BNP Paribas vs. Stevia Nutra Corp | BNP Paribas vs. Regent Ventures | BNP Paribas vs. Element Global | BNP Paribas vs. Affiliated Resources Corp |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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