Correlation Between HSBC SP and Ossiam Bloomberg
Can any of the company-specific risk be diversified away by investing in both HSBC SP and Ossiam Bloomberg 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 SP and Ossiam Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC SP 500 and Ossiam Bloomberg USA, you can compare the effects of market volatilities on HSBC SP and Ossiam Bloomberg 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 SP with a short position of Ossiam Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC SP and Ossiam Bloomberg.
Diversification Opportunities for HSBC SP and Ossiam Bloomberg
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HSBC and Ossiam is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HSBC SP 500 and Ossiam Bloomberg USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Bloomberg USA and HSBC SP 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 SP 500 are associated (or correlated) with Ossiam Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Bloomberg USA has no effect on the direction of HSBC SP i.e., HSBC SP and Ossiam Bloomberg go up and down completely randomly.
Pair Corralation between HSBC SP and Ossiam Bloomberg
Assuming the 90 days trading horizon HSBC SP 500 is expected to generate 0.71 times more return on investment than Ossiam Bloomberg. However, HSBC SP 500 is 1.4 times less risky than Ossiam Bloomberg. It trades about 0.15 of its potential returns per unit of risk. Ossiam Bloomberg USA is currently generating about 0.09 per unit of risk. If you would invest 3,732 in HSBC SP 500 on August 31, 2024 and sell it today you would earn a total of 2,035 from holding HSBC SP 500 or generate 54.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.5% |
| Values | Daily Returns |
HSBC SP 500 vs. Ossiam Bloomberg USA
Performance |
| Timeline |
| HSBC SP 500 |
| Ossiam Bloomberg USA |
HSBC SP and Ossiam Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC SP and Ossiam Bloomberg
The main advantage of trading using opposite HSBC SP and Ossiam Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC SP position performs unexpectedly, Ossiam Bloomberg 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 Ossiam Bloomberg will offset losses from the drop in Ossiam Bloomberg's long position.| HSBC SP vs. HSBC MSCI China | HSBC SP vs. HSBC Emerging Market | HSBC SP vs. HSBC USA Sustainable | HSBC SP vs. HSBC MSCI Japan |
| Ossiam Bloomberg vs. Ossiam Lux Ossiam | Ossiam Bloomberg vs. Ossiam Europe ESG | Ossiam Bloomberg vs. Ossiam Lux | Ossiam Bloomberg vs. Ossiam Shiller Barclays |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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