Correlation Between Amundi ETF and HSBC UK
Can any of the company-specific risk be diversified away by investing in both Amundi ETF and HSBC UK 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 Amundi ETF and HSBC UK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi ETF Leveraged and HSBC UK SUS, you can compare the effects of market volatilities on Amundi ETF and HSBC UK 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 Amundi ETF with a short position of HSBC UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and HSBC UK.
Diversification Opportunities for Amundi ETF and HSBC UK
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and HSBC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF Leveraged and HSBC UK SUS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC UK SUS and Amundi ETF 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 Amundi ETF Leveraged are associated (or correlated) with HSBC UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC UK SUS has no effect on the direction of Amundi ETF i.e., Amundi ETF and HSBC UK go up and down completely randomly.
Pair Corralation between Amundi ETF and HSBC UK
Assuming the 90 days trading horizon Amundi ETF Leveraged is expected to generate 2.49 times more return on investment than HSBC UK. However, Amundi ETF is 2.49 times more volatile than HSBC UK SUS. It trades about 0.24 of its potential returns per unit of risk. HSBC UK SUS is currently generating about 0.09 per unit of risk. If you would invest 2,236 in Amundi ETF Leveraged on August 31, 2024 and sell it today you would earn a total of 284.00 from holding Amundi ETF Leveraged or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi ETF Leveraged vs. HSBC UK SUS
Performance |
| Timeline |
| Amundi ETF Leveraged |
| HSBC UK SUS |
Amundi ETF and HSBC UK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and HSBC UK
The main advantage of trading using opposite Amundi ETF and HSBC UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF position performs unexpectedly, HSBC UK 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 UK will offset losses from the drop in HSBC UK's long position.| Amundi ETF vs. Lyxor UCITS NASDAQ 100 | Amundi ETF vs. Lyxor UCITS Daily | Amundi ETF vs. Lyxor UCITS Stoxx | Amundi ETF vs. Amundi Index Solutions |
| HSBC UK vs. HSBC MSCI China | HSBC UK vs. HSBC Emerging Market | HSBC UK vs. HSBC USA Sustainable | HSBC UK vs. HSBC MSCI Japan |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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