Correlation Between Cboe UK and HSBC NASDAQ
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By analyzing existing cross correlation between Cboe UK Consumer and HSBC NASDAQ Global, you can compare the effects of market volatilities on Cboe UK and HSBC NASDAQ 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 Cboe UK with a short position of HSBC NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and HSBC NASDAQ.
Diversification Opportunities for Cboe UK and HSBC NASDAQ
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cboe and HSBC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and HSBC NASDAQ Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC NASDAQ Global and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with HSBC NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC NASDAQ Global has no effect on the direction of Cboe UK i.e., Cboe UK and HSBC NASDAQ go up and down completely randomly.
Pair Corralation between Cboe UK and HSBC NASDAQ
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.97 times more return on investment than HSBC NASDAQ. However, Cboe UK Consumer is 1.03 times less risky than HSBC NASDAQ. It trades about -0.01 of its potential returns per unit of risk. HSBC NASDAQ Global is currently generating about -0.13 per unit of risk. If you would invest 3,224,636 in Cboe UK Consumer on November 28, 2024 and sell it today you would lose (15,034) from holding Cboe UK Consumer or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. HSBC NASDAQ Global
Performance |
| Timeline |
Cboe UK and HSBC NASDAQ Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
HSBC NASDAQ Global
Pair trading matchups for HSBC NASDAQ
Pair Trading with Cboe UK and HSBC NASDAQ
The main advantage of trading using opposite Cboe UK and HSBC NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, HSBC NASDAQ 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 NASDAQ will offset losses from the drop in HSBC NASDAQ's long position.| Cboe UK vs. Eastinco Mining Exploration | Cboe UK vs. Pan American Silver | Cboe UK vs. Dolly Varden Silver | Cboe UK vs. Griffin Mining |
| HSBC NASDAQ vs. Leverage Shares 3x | HSBC NASDAQ vs. GraniteShares 3x Short | HSBC NASDAQ vs. Leverage Shares 3x | HSBC NASDAQ vs. GraniteShares 3x Long |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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