Correlation Between HSBC MSCI and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both HSBC MSCI and SPDR Barclays 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 MSCI and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC MSCI USA and SPDR Barclays Capital, you can compare the effects of market volatilities on HSBC MSCI and SPDR Barclays 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 MSCI with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC MSCI and SPDR Barclays.
Diversification Opportunities for HSBC MSCI and SPDR Barclays
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HSBC and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HSBC MSCI USA and SPDR Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Capital and HSBC MSCI 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 MSCI USA are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Capital has no effect on the direction of HSBC MSCI i.e., HSBC MSCI and SPDR Barclays go up and down completely randomly.
Pair Corralation between HSBC MSCI and SPDR Barclays
If you would invest (100.00) in SPDR Barclays Capital on December 31, 2024 and sell it today you would earn a total of 100.00 from holding SPDR Barclays Capital or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HSBC MSCI USA vs. SPDR Barclays Capital
Performance |
| Timeline |
| HSBC MSCI USA |
| SPDR Barclays Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HSBC MSCI and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC MSCI and SPDR Barclays
The main advantage of trading using opposite HSBC MSCI and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC MSCI position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| HSBC MSCI vs. HSBC MSCI China | HSBC MSCI vs. HSBC Emerging Market | HSBC MSCI vs. HSBC USA Sustainable | HSBC MSCI vs. HSBC MSCI Japan |
| SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR Barclays Cap | SPDR Barclays vs. SPDR SP 500 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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