Correlation Between COMMERCIAL VEHICLE and HSBC Holdings
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By analyzing existing cross correlation between COMMERCIAL VEHICLE and HSBC Holdings plc, you can compare the effects of market volatilities on COMMERCIAL VEHICLE 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 COMMERCIAL VEHICLE with a short position of HSBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMMERCIAL VEHICLE and HSBC Holdings.
Diversification Opportunities for COMMERCIAL VEHICLE and HSBC Holdings
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COMMERCIAL and HSBC is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding COMMERCIAL VEHICLE 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 COMMERCIAL VEHICLE 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 COMMERCIAL VEHICLE 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 COMMERCIAL VEHICLE i.e., COMMERCIAL VEHICLE and HSBC Holdings go up and down completely randomly.
Pair Corralation between COMMERCIAL VEHICLE and HSBC Holdings
Assuming the 90 days trading horizon COMMERCIAL VEHICLE is expected to under-perform the HSBC Holdings. In addition to that, COMMERCIAL VEHICLE is 2.44 times more volatile than HSBC Holdings plc. It trades about -0.1 of its total potential returns per unit of risk. HSBC Holdings plc is currently generating about 0.09 per unit of volatility. If you would invest 633.00 in HSBC Holdings plc on September 12, 2024 and sell it today you would earn a total of 282.00 from holding HSBC Holdings plc or generate 44.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMMERCIAL VEHICLE vs. HSBC Holdings plc
Performance |
| Timeline |
| COMMERCIAL VEHICLE |
| HSBC Holdings plc |
COMMERCIAL VEHICLE and HSBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMMERCIAL VEHICLE and HSBC Holdings
The main advantage of trading using opposite COMMERCIAL VEHICLE and HSBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMMERCIAL VEHICLE 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.| COMMERCIAL VEHICLE vs. Taylor Morrison Home | COMMERCIAL VEHICLE vs. Haier Smart Home | COMMERCIAL VEHICLE vs. LANDSEA HOMES P | COMMERCIAL VEHICLE vs. Western Copper and |
| HSBC Holdings vs. Dave Busters Entertainment | HSBC Holdings vs. COMMERCIAL VEHICLE | HSBC Holdings vs. GigaMedia | HSBC Holdings vs. CarsalesCom |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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