Correlation Between HSBC Emerging and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both HSBC Emerging and Amundi ETF 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 Emerging and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC Emerging Market and Amundi ETF MSCI, you can compare the effects of market volatilities on HSBC Emerging and Amundi ETF 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 Emerging with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Emerging and Amundi ETF.
Diversification Opportunities for HSBC Emerging and Amundi ETF
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HSBC and Amundi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Emerging Market and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and HSBC Emerging 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 Emerging Market are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of HSBC Emerging i.e., HSBC Emerging and Amundi ETF go up and down completely randomly.
Pair Corralation between HSBC Emerging and Amundi ETF
Assuming the 90 days trading horizon HSBC Emerging Market is expected to generate 1.37 times more return on investment than Amundi ETF. However, HSBC Emerging is 1.37 times more volatile than Amundi ETF MSCI. It trades about 0.04 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.04 per unit of risk. If you would invest 1,238 in HSBC Emerging Market on August 27, 2024 and sell it today you would earn a total of 225.00 from holding HSBC Emerging Market or generate 18.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HSBC Emerging Market vs. Amundi ETF MSCI
Performance |
| Timeline |
| HSBC Emerging Market |
| Amundi ETF MSCI |
HSBC Emerging and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC Emerging and Amundi ETF
The main advantage of trading using opposite HSBC Emerging and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Emerging position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| HSBC Emerging vs. Lyxor UCITS Stoxx | HSBC Emerging vs. Xtrackers MSCI Europe | HSBC Emerging vs. SPDR SP 500 |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Lyxor UCITS Stoxx | Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi ETF PEA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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