Correlation Between HSBC MSCI and VanEck AMX
Can any of the company-specific risk be diversified away by investing in both HSBC MSCI and VanEck AMX 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 VanEck AMX 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 VanEck AMX UCITS, you can compare the effects of market volatilities on HSBC MSCI and VanEck AMX 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 VanEck AMX. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC MSCI and VanEck AMX.
Diversification Opportunities for HSBC MSCI and VanEck AMX
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between HSBC and VanEck is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding HSBC MSCI Japan and VanEck AMX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck AMX UCITS 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 VanEck AMX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck AMX UCITS has no effect on the direction of HSBC MSCI i.e., HSBC MSCI and VanEck AMX go up and down completely randomly.
Pair Corralation between HSBC MSCI and VanEck AMX
Assuming the 90 days trading horizon HSBC MSCI Japan is expected to generate 0.97 times more return on investment than VanEck AMX. However, HSBC MSCI Japan is 1.03 times less risky than VanEck AMX. It trades about 0.38 of its potential returns per unit of risk. VanEck AMX UCITS is currently generating about 0.04 per unit of risk. If you would invest 3,642 in HSBC MSCI Japan on September 5, 2024 and sell it today you would earn a total of 296.00 from holding HSBC MSCI Japan or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HSBC MSCI Japan vs. VanEck AMX UCITS
Performance |
| Timeline |
| HSBC MSCI Japan |
| VanEck AMX UCITS |
HSBC MSCI and VanEck AMX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC MSCI and VanEck AMX
The main advantage of trading using opposite HSBC MSCI and VanEck AMX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC MSCI position performs unexpectedly, VanEck AMX 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 VanEck AMX will offset losses from the drop in VanEck AMX's long position.| HSBC MSCI vs. Amundi Index Solutions | HSBC MSCI vs. Manitou BF SA | HSBC MSCI vs. 21Shares Polkadot ETP | HSBC MSCI vs. Ekinops SA |
| VanEck AMX vs. HSBC MSCI Japan | VanEck AMX vs. iShares II Public | VanEck AMX vs. Hydratec Industries NV | VanEck AMX vs. VanEck Polkadot ETN |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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