Correlation Between HSBC Multi and HSBC Emerging
Can any of the company-specific risk be diversified away by investing in both HSBC Multi and HSBC Emerging 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 Multi and HSBC Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC Multi Factor and HSBC Emerging Market, you can compare the effects of market volatilities on HSBC Multi and HSBC Emerging 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 Multi with a short position of HSBC Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Multi and HSBC Emerging.
Diversification Opportunities for HSBC Multi and HSBC Emerging
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 Multi Factor and HSBC Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Emerging Market and HSBC Multi 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 Multi Factor are associated (or correlated) with HSBC Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Emerging Market has no effect on the direction of HSBC Multi i.e., HSBC Multi and HSBC Emerging go up and down completely randomly.
Pair Corralation between HSBC Multi and HSBC Emerging
If you would invest 2,359 in HSBC Multi Factor on August 28, 2024 and sell it today you would earn a total of 0.00 from holding HSBC Multi Factor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
HSBC Multi Factor vs. HSBC Emerging Market
Performance |
| Timeline |
| HSBC Multi Factor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HSBC Emerging Market |
HSBC Multi and HSBC Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC Multi and HSBC Emerging
The main advantage of trading using opposite HSBC Multi and HSBC Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Multi position performs unexpectedly, HSBC Emerging 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 Emerging will offset losses from the drop in HSBC Emerging's long position.| HSBC Multi vs. Lyxor UCITS Japan | HSBC Multi vs. Lyxor UCITS Japan | HSBC Multi vs. Lyxor UCITS Stoxx | HSBC Multi vs. Amundi CAC 40 |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |