Correlation Between HSBC Holdings and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both HSBC Holdings and PT Wintermar 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 PT Wintermar 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 PT Wintermar Offshore, you can compare the effects of market volatilities on HSBC Holdings and PT Wintermar 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 PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Holdings and PT Wintermar.
Diversification Opportunities for HSBC Holdings and PT Wintermar
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HSBC and W6O is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings plc and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore 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 PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of HSBC Holdings i.e., HSBC Holdings and PT Wintermar go up and down completely randomly.
Pair Corralation between HSBC Holdings and PT Wintermar
Assuming the 90 days trading horizon HSBC Holdings plc is expected to generate 0.24 times more return on investment than PT Wintermar. However, HSBC Holdings plc is 4.12 times less risky than PT Wintermar. It trades about 0.24 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about -0.11 per unit of risk. If you would invest 4,700 in HSBC Holdings plc on October 25, 2024 and sell it today you would earn a total of 220.00 from holding HSBC Holdings plc or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HSBC Holdings plc vs. PT Wintermar Offshore
Performance |
| Timeline |
| HSBC Holdings plc |
| PT Wintermar Offshore |
HSBC Holdings and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC Holdings and PT Wintermar
The main advantage of trading using opposite HSBC Holdings and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Holdings position performs unexpectedly, PT Wintermar 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 PT Wintermar will offset losses from the drop in PT Wintermar's long position.| HSBC Holdings vs. ELMOS SEMICONDUCTOR | HSBC Holdings vs. PURETECH HEALTH PLC | HSBC Holdings vs. BE Semiconductor Industries | HSBC Holdings vs. Universal Health Realty |
| PT Wintermar vs. Magnachip Semiconductor | PT Wintermar vs. COMBA TELECOM SYST | PT Wintermar vs. Iridium Communications | PT Wintermar vs. TOREX SEMICONDUCTOR LTD |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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