Correlation Between Cboe UK and HSBC Emerging
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By analyzing existing cross correlation between Cboe UK Consumer and HSBC Emerging Market, you can compare the effects of market volatilities on Cboe UK and HSBC Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and HSBC Emerging.
Diversification Opportunities for Cboe UK and HSBC Emerging
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cboe and HSBC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and HSBC Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Emerging Market 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Emerging Market has no effect on the direction of Cboe UK i.e., Cboe UK and HSBC Emerging go up and down completely randomly.
Pair Corralation between Cboe UK and HSBC Emerging
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.96 times more return on investment than HSBC Emerging. However, Cboe UK Consumer is 1.05 times less risky than HSBC Emerging. It trades about 0.48 of its potential returns per unit of risk. HSBC Emerging Market is currently generating about -0.23 per unit of risk. If you would invest 2,925,026 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 336,221 from holding Cboe UK Consumer or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cboe UK Consumer vs. HSBC Emerging Market
Performance |
| Timeline |
Cboe UK and HSBC Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
HSBC Emerging Market
Pair trading matchups for HSBC Emerging
Pair Trading with Cboe UK and HSBC Emerging
The main advantage of trading using opposite Cboe UK and HSBC Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, HSBC Emerging 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 Emerging will offset losses from the drop in HSBC Emerging's long position.| Cboe UK vs. Southern Copper Corp | Cboe UK vs. Made Tech Group | Cboe UK vs. Wheaton Precious Metals | Cboe UK vs. TechnipFMC PLC |
| HSBC Emerging vs. HSBC FTSE EPRA | HSBC Emerging vs. HSBC SP 500 | HSBC Emerging vs. HSBC MSCI Emerging | HSBC Emerging vs. HSBC NASDAQ Global |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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