Correlation Between HSBC EMERGING and HSBC USA
Can any of the company-specific risk be diversified away by investing in both HSBC EMERGING and HSBC USA 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 HSBC USA 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 HSBC USA SUSTAINABLE, you can compare the effects of market volatilities on HSBC EMERGING and HSBC USA 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 HSBC USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC EMERGING and HSBC USA.
Diversification Opportunities for HSBC EMERGING and HSBC USA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HSBC and HSBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HSBC EMERGING MARKET and HSBC USA SUSTAINABLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC USA SUSTAINABLE 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 HSBC USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC USA SUSTAINABLE has no effect on the direction of HSBC EMERGING i.e., HSBC EMERGING and HSBC USA go up and down completely randomly.
Pair Corralation between HSBC EMERGING and HSBC USA
If you would invest 1,527 in HSBC EMERGING MARKET on November 27, 2024 and sell it today you would earn a total of 70.00 from holding HSBC EMERGING MARKET or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HSBC EMERGING MARKET vs. HSBC USA SUSTAINABLE
Performance |
| Timeline |
| HSBC EMERGING MARKET |
| HSBC USA SUSTAINABLE |
HSBC EMERGING and HSBC USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC EMERGING and HSBC USA
The main advantage of trading using opposite HSBC EMERGING and HSBC USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC EMERGING position performs unexpectedly, HSBC USA 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 HSBC USA will offset losses from the drop in HSBC USA's long position.| HSBC EMERGING vs. HSBC USA SUSTAINABLE | HSBC EMERGING vs. HSBC MSCI Europe | HSBC EMERGING vs. HSBC MSCI Japan | HSBC EMERGING vs. HSBC DEVELOPED WORLD |
| HSBC USA vs. HSBC MSCI Europe | HSBC USA vs. HSBC EMERGING MARKET | HSBC USA vs. HSBC MSCI Japan | HSBC USA vs. HSBC DEVELOPED WORLD |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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