Correlation Between HSBC Holdings and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both HSBC Holdings and TEN SQUARE 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 HSBC Holdings and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC Holdings plc and TEN SQUARE GAMES, you can compare the effects of market volatilities on HSBC Holdings and TEN SQUARE 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 HSBC Holdings with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Holdings and TEN SQUARE.
Diversification Opportunities for HSBC Holdings and TEN SQUARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HSBC and TEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings plc and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and HSBC Holdings 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 HSBC Holdings plc are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of HSBC Holdings i.e., HSBC Holdings and TEN SQUARE go up and down completely randomly.
Pair Corralation between HSBC Holdings and TEN SQUARE
Assuming the 90 days trading horizon HSBC Holdings plc is expected to generate 0.78 times more return on investment than TEN SQUARE. However, HSBC Holdings plc is 1.28 times less risky than TEN SQUARE. It trades about 0.3 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.03 per unit of risk. If you would invest 4,180 in HSBC Holdings plc on November 9, 2024 and sell it today you would earn a total of 780.00 from holding HSBC Holdings plc or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.78% |
| Values | Daily Returns |
HSBC Holdings plc vs. TEN SQUARE GAMES
Performance |
| Timeline |
| HSBC Holdings plc |
| TEN SQUARE GAMES |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HSBC Holdings and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC Holdings and TEN SQUARE
The main advantage of trading using opposite HSBC Holdings and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Holdings position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| HSBC Holdings vs. PSI Software AG | HSBC Holdings vs. Constellation Software | HSBC Holdings vs. FORMPIPE SOFTWARE AB | HSBC Holdings vs. Alfa Financial Software |
| TEN SQUARE vs. Vishay Intertechnology | TEN SQUARE vs. Alfa Financial Software | TEN SQUARE vs. Sixt Leasing SE | TEN SQUARE vs. Align Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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