Correlation Between State Street and Hsbc Treasury
Can any of the company-specific risk be diversified away by investing in both State Street and Hsbc Treasury 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 State Street and Hsbc Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Master and Hsbc Treasury Money, you can compare the effects of market volatilities on State Street and Hsbc Treasury 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 State Street with a short position of Hsbc Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Hsbc Treasury.
Diversification Opportunities for State Street and Hsbc Treasury
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Hsbc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street Master and Hsbc Treasury Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsbc Treasury Money and State Street 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 State Street Master are associated (or correlated) with Hsbc Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsbc Treasury Money has no effect on the direction of State Street i.e., State Street and Hsbc Treasury go up and down completely randomly.
Pair Corralation between State Street and Hsbc Treasury
If you would invest 96.00 in State Street Master on November 3, 2024 and sell it today you would earn a total of 4.00 from holding State Street Master or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.89% |
| Values | Daily Returns |
State Street Master vs. Hsbc Treasury Money
Performance |
| Timeline |
| State Street Master |
| Hsbc Treasury Money |
State Street and Hsbc Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Hsbc Treasury
The main advantage of trading using opposite State Street and Hsbc Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Hsbc Treasury 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 Treasury will offset losses from the drop in Hsbc Treasury's long position.| State Street vs. Tiaa Cref Lifecycle Retirement | State Street vs. Transamerica Cleartrack Retirement | State Street vs. Calvert Moderate Allocation | State Street vs. Franklin Lifesmart Retirement |
| Hsbc Treasury vs. Needham Small Cap | Hsbc Treasury vs. Oklahoma College Savings | Hsbc Treasury vs. Lebenthal Lisanti Small | Hsbc Treasury vs. Hunter Small Cap |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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