Correlation Between Lery Seafood and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Lery Seafood 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 Lery Seafood and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and BNP Paribas SA, you can compare the effects of market volatilities on Lery Seafood 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 Lery Seafood with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and BNP Paribas.
Diversification Opportunities for Lery Seafood and BNP Paribas
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lery and BNP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group 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 Lery Seafood 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 Lery Seafood Group 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 Lery Seafood i.e., Lery Seafood and BNP Paribas go up and down completely randomly.
Pair Corralation between Lery Seafood and BNP Paribas
Assuming the 90 days horizon Lery Seafood is expected to generate 1.25 times less return on investment than BNP Paribas. In addition to that, Lery Seafood is 1.82 times more volatile than BNP Paribas SA. It trades about 0.15 of its total potential returns per unit of risk. BNP Paribas SA is currently generating about 0.35 per unit of volatility. If you would invest 5,306 in BNP Paribas SA on February 23, 2024 and sell it today you would earn a total of 1,470 from holding BNP Paribas SA or generate 27.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lery Seafood Group vs. BNP Paribas SA
Performance |
Timeline |
Lery Seafood Group |
BNP Paribas SA |
Lery Seafood and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lery Seafood and BNP Paribas
The main advantage of trading using opposite Lery Seafood and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood 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.Lery Seafood vs. Nestl SA | Lery Seafood vs. Hormel Foods | Lery Seafood vs. CITIUS RESOURCES LS 005 | Lery Seafood vs. Superior Plus Corp |
BNP Paribas vs. Lloyds Banking Group | BNP Paribas vs. Lloyds Banking Group | BNP Paribas vs. UniCredit SpA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |