Correlation Between HSBC MSCI and IShares VII
Can any of the company-specific risk be diversified away by investing in both HSBC MSCI and IShares VII 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 MSCI and IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC MSCI Japan and iShares VII Public, you can compare the effects of market volatilities on HSBC MSCI and IShares VII 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 MSCI with a short position of IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC MSCI and IShares VII.
Diversification Opportunities for HSBC MSCI and IShares VII
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HSBC and IShares is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HSBC MSCI Japan and iShares VII Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII Public and HSBC MSCI 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 MSCI Japan are associated (or correlated) with IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII Public has no effect on the direction of HSBC MSCI i.e., HSBC MSCI and IShares VII go up and down completely randomly.
Pair Corralation between HSBC MSCI and IShares VII
Assuming the 90 days trading horizon HSBC MSCI Japan is expected to generate 0.76 times more return on investment than IShares VII. However, HSBC MSCI Japan is 1.32 times less risky than IShares VII. It trades about 0.06 of its potential returns per unit of risk. iShares VII Public is currently generating about -0.04 per unit of risk. If you would invest 3,295 in HSBC MSCI Japan on September 3, 2024 and sell it today you would earn a total of 517.00 from holding HSBC MSCI Japan or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
HSBC MSCI Japan vs. iShares VII Public
Performance |
| Timeline |
| HSBC MSCI Japan |
| iShares VII Public |
HSBC MSCI and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC MSCI and IShares VII
The main advantage of trading using opposite HSBC MSCI and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC MSCI position performs unexpectedly, IShares VII 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 IShares VII will offset losses from the drop in IShares VII's long position.| HSBC MSCI vs. HSBC MSCI China | HSBC MSCI vs. HSBC Emerging Market | HSBC MSCI vs. HSBC USA Sustainable | HSBC MSCI vs. HSBC MUCPAB ETF |
| IShares VII vs. Vanguard FTSE Developed | IShares VII vs. HSBC MSCI Japan | IShares VII vs. iShares II Public | IShares VII vs. Hydratec Industries NV |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |