Correlation Between FRACTAL GAMING and HSBC Holdings
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and HSBC Holdings 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 FRACTAL GAMING and HSBC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and HSBC Holdings plc, you can compare the effects of market volatilities on FRACTAL GAMING and HSBC Holdings 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 FRACTAL GAMING with a short position of HSBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and HSBC Holdings.
Diversification Opportunities for FRACTAL GAMING and HSBC Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and HSBC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and HSBC Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Holdings plc and FRACTAL GAMING 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 FRACTAL GAMING GROUP are associated (or correlated) with HSBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Holdings plc has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and HSBC Holdings go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and HSBC Holdings
Assuming the 90 days horizon FRACTAL GAMING is expected to generate 2.11 times less return on investment than HSBC Holdings. In addition to that, FRACTAL GAMING is 1.67 times more volatile than HSBC Holdings plc. It trades about 0.08 of its total potential returns per unit of risk. HSBC Holdings plc is currently generating about 0.29 per unit of volatility. If you would invest 842.00 in HSBC Holdings plc on October 9, 2024 and sell it today you would earn a total of 110.00 from holding HSBC Holdings plc or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. HSBC Holdings plc
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| HSBC Holdings plc |
FRACTAL GAMING and HSBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and HSBC Holdings
The main advantage of trading using opposite FRACTAL GAMING and HSBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, HSBC Holdings 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 HSBC Holdings will offset losses from the drop in HSBC Holdings' long position.| FRACTAL GAMING vs. Datalogic SpA | FRACTAL GAMING vs. Superior Plus Corp | FRACTAL GAMING vs. NMI Holdings | FRACTAL GAMING vs. SIVERS SEMICONDUCTORS AB |
| HSBC Holdings vs. The Hongkong and | HSBC Holdings vs. Benchmark Electronics | HSBC Holdings vs. DALATA HOTEL | HSBC Holdings vs. Renesas Electronics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |