Correlation Between HSBC Hang and Baloise Holding
Can any of the company-specific risk be diversified away by investing in both HSBC Hang and Baloise Holding 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 Hang and Baloise Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC Hang Seng and Baloise Holding AG, you can compare the effects of market volatilities on HSBC Hang and Baloise Holding 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 Hang with a short position of Baloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Hang and Baloise Holding.
Diversification Opportunities for HSBC Hang and Baloise Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between HSBC and Baloise is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Hang Seng and Baloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Holding AG and HSBC Hang 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 Hang Seng are associated (or correlated) with Baloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Holding AG has no effect on the direction of HSBC Hang i.e., HSBC Hang and Baloise Holding go up and down completely randomly.
Pair Corralation between HSBC Hang and Baloise Holding
Assuming the 90 days trading horizon HSBC Hang Seng is expected to generate 4.08 times more return on investment than Baloise Holding. However, HSBC Hang is 4.08 times more volatile than Baloise Holding AG. It trades about -0.01 of its potential returns per unit of risk. Baloise Holding AG is currently generating about -0.18 per unit of risk. If you would invest 655.00 in HSBC Hang Seng on September 13, 2024 and sell it today you would lose (16.00) from holding HSBC Hang Seng or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.42% |
| Values | Daily Returns |
HSBC Hang Seng vs. Baloise Holding AG
Performance |
| Timeline |
| HSBC Hang Seng |
| Baloise Holding AG |
HSBC Hang and Baloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC Hang and Baloise Holding
The main advantage of trading using opposite HSBC Hang and Baloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Hang position performs unexpectedly, Baloise Holding 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 Baloise Holding will offset losses from the drop in Baloise Holding's long position.| HSBC Hang vs. Baloise Holding AG | HSBC Hang vs. 21Shares Polkadot ETP | HSBC Hang vs. UBS ETF MSCI | HSBC Hang vs. BB Biotech AG |
| Baloise Holding vs. Swiss Life Holding | Baloise Holding vs. Helvetia Holding AG | Baloise Holding vs. Swisscom AG | Baloise Holding vs. Zurich Insurance Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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