Correlation Between BNP Paribas and SSB Bancorp

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Can any of the company-specific risk be diversified away by investing in both BNP Paribas and SSB Bancorp 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 SSB Bancorp 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 SSB Bancorp, you can compare the effects of market volatilities on BNP Paribas and SSB Bancorp 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 SSB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and SSB Bancorp.

Diversification Opportunities for BNP Paribas and SSB Bancorp

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between BNP and SSB is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas SA and SSB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSB Bancorp 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 SSB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSB Bancorp has no effect on the direction of BNP Paribas i.e., BNP Paribas and SSB Bancorp go up and down completely randomly.

Pair Corralation between BNP Paribas and SSB Bancorp

Assuming the 90 days horizon BNP Paribas SA is expected to under-perform the SSB Bancorp. In addition to that, BNP Paribas is 2.6 times more volatile than SSB Bancorp. It trades about -0.09 of its total potential returns per unit of risk. SSB Bancorp is currently generating about 0.11 per unit of volatility. If you would invest  1,025  in SSB Bancorp on August 20, 2025 and sell it today you would earn a total of  75.00  from holding SSB Bancorp or generate 7.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

BNP Paribas SA  vs.  SSB Bancorp

 Performance 
       Timeline  
BNP Paribas SA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days BNP Paribas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
SSB Bancorp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SSB Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, SSB Bancorp may actually be approaching a critical reversion point that can send shares even higher in December 2025.

BNP Paribas and SSB Bancorp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BNP Paribas and SSB Bancorp

The main advantage of trading using opposite BNP Paribas and SSB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas position performs unexpectedly, SSB Bancorp 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 SSB Bancorp will offset losses from the drop in SSB Bancorp's long position.
The idea behind BNP Paribas SA and SSB Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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