Correlation Between HSBC USA and HSBC Multi
Can any of the company-specific risk be diversified away by investing in both HSBC USA and HSBC Multi 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 USA and HSBC Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC USA Sustainable and HSBC Multi Factor, you can compare the effects of market volatilities on HSBC USA and HSBC Multi 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 USA with a short position of HSBC Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC USA and HSBC Multi.
Diversification Opportunities for HSBC USA and HSBC Multi
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 USA Sustainable and HSBC Multi Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Multi Factor and HSBC USA 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 USA Sustainable are associated (or correlated) with HSBC Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Multi Factor has no effect on the direction of HSBC USA i.e., HSBC USA and HSBC Multi go up and down completely randomly.
Pair Corralation between HSBC USA and HSBC Multi
If you would invest 2,228 in HSBC USA Sustainable on August 24, 2024 and sell it today you would earn a total of 730.00 from holding HSBC USA Sustainable or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
HSBC USA Sustainable vs. HSBC Multi Factor
Performance |
| Timeline |
| HSBC USA Sustainable |
| HSBC Multi Factor |
HSBC USA and HSBC Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC USA and HSBC Multi
The main advantage of trading using opposite HSBC USA and HSBC Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC USA position performs unexpectedly, HSBC Multi 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 Multi will offset losses from the drop in HSBC Multi's long position.| HSBC USA vs. HSBC Multi Factor | HSBC USA vs. HSBC MSCI China | HSBC USA vs. HSBC Emerging Market | HSBC USA vs. HSBC MSCI Japan |
| HSBC Multi vs. HSBC MSCI China | HSBC Multi vs. HSBC Emerging Market | HSBC Multi vs. HSBC USA Sustainable | HSBC Multi vs. HSBC MSCI Japan |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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