Correlation Between HSBC ETFs and LG Longer
Can any of the company-specific risk be diversified away by investing in both HSBC ETFs and LG Longer 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 ETFs and LG Longer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC ETFs Public and LG Longer Dated, you can compare the effects of market volatilities on HSBC ETFs and LG Longer 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 ETFs with a short position of LG Longer. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC ETFs and LG Longer.
Diversification Opportunities for HSBC ETFs and LG Longer
Pay attention - limited upside
The 3 months correlation between HSBC and COMF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HSBC ETFs Public and LG Longer Dated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Longer Dated and HSBC ETFs 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 ETFs Public are associated (or correlated) with LG Longer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Longer Dated has no effect on the direction of HSBC ETFs i.e., HSBC ETFs and LG Longer go up and down completely randomly.
Pair Corralation between HSBC ETFs and LG Longer
If you would invest 2,261 in LG Longer Dated on September 2, 2024 and sell it today you would earn a total of 4.00 from holding LG Longer Dated or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HSBC ETFs Public vs. LG Longer Dated
Performance |
| Timeline |
| HSBC ETFs Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LG Longer Dated |
HSBC ETFs and LG Longer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC ETFs and LG Longer
The main advantage of trading using opposite HSBC ETFs and LG Longer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC ETFs position performs unexpectedly, LG Longer 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 LG Longer will offset losses from the drop in LG Longer's long position.| HSBC ETFs vs. HSBC FTSE EPRA | HSBC ETFs vs. HSBC SP 500 | HSBC ETFs vs. HSBC MSCI Emerging | HSBC ETFs vs. HSBC NASDAQ Global |
| LG Longer vs. iShares MSCI Japan | LG Longer vs. Amundi EUR High | LG Longer vs. iShares JP Morgan | LG Longer vs. Xtrackers MSCI |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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