Correlation Between Hsbc Treasury and Cullen International
Can any of the company-specific risk be diversified away by investing in both Hsbc Treasury and Cullen International 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 Treasury and Cullen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsbc Treasury Money and Cullen International High, you can compare the effects of market volatilities on Hsbc Treasury and Cullen International 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 Treasury with a short position of Cullen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsbc Treasury and Cullen International.
Diversification Opportunities for Hsbc Treasury and Cullen International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hsbc and Cullen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hsbc Treasury Money and Cullen International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen International High and Hsbc Treasury 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 Treasury Money are associated (or correlated) with Cullen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen International High has no effect on the direction of Hsbc Treasury i.e., Hsbc Treasury and Cullen International go up and down completely randomly.
Pair Corralation between Hsbc Treasury and Cullen International
If you would invest 1,088 in Cullen International High on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Cullen International High or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hsbc Treasury Money vs. Cullen International High
Performance |
| Timeline |
| Hsbc Treasury Money |
| Cullen International High |
Hsbc Treasury and Cullen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hsbc Treasury and Cullen International
The main advantage of trading using opposite Hsbc Treasury and Cullen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsbc Treasury position performs unexpectedly, Cullen International 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 Cullen International will offset losses from the drop in Cullen International's long position.| Hsbc Treasury vs. Guggenheim Diversified Income | Hsbc Treasury vs. Aqr Diversified Arbitrage | Hsbc Treasury vs. Western Asset Diversified | Hsbc Treasury vs. Elfun Diversified Fund |
| Cullen International vs. Small Cap Stock | Cullen International vs. L Abbett Fundamental | Cullen International vs. Ab Small Cap | Cullen International vs. Rbb Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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