Correlation Between IShares Automation and HSBC Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares Automation and HSBC Bloomberg 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 IShares Automation and HSBC Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Automation Robotics and HSBC Bloomberg Global, you can compare the effects of market volatilities on IShares Automation and HSBC Bloomberg 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 IShares Automation with a short position of HSBC Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Automation and HSBC Bloomberg.
Diversification Opportunities for IShares Automation and HSBC Bloomberg
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and HSBC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Automation Robotics and HSBC Bloomberg Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Bloomberg Global and IShares Automation 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 iShares Automation Robotics are associated (or correlated) with HSBC Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Bloomberg Global has no effect on the direction of IShares Automation i.e., IShares Automation and HSBC Bloomberg go up and down completely randomly.
Pair Corralation between IShares Automation and HSBC Bloomberg
Assuming the 90 days trading horizon iShares Automation Robotics is expected to generate 3.88 times more return on investment than HSBC Bloomberg. However, IShares Automation is 3.88 times more volatile than HSBC Bloomberg Global. It trades about 0.24 of its potential returns per unit of risk. HSBC Bloomberg Global is currently generating about -0.07 per unit of risk. If you would invest 1,342 in iShares Automation Robotics on September 2, 2024 and sell it today you would earn a total of 84.00 from holding iShares Automation Robotics or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Automation Robotics vs. HSBC Bloomberg Global
Performance |
| Timeline |
| iShares Automation |
| HSBC Bloomberg Global |
IShares Automation and HSBC Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Automation and HSBC Bloomberg
The main advantage of trading using opposite IShares Automation and HSBC Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Automation position performs unexpectedly, HSBC Bloomberg 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 Bloomberg will offset losses from the drop in HSBC Bloomberg's long position.| IShares Automation vs. Vanguard FTSE Developed | IShares Automation vs. Leverage Shares 2x | IShares Automation vs. Amundi Index Solutions | IShares Automation vs. Amundi Index Solutions |
| HSBC Bloomberg vs. HSBC FTSE EPRA | HSBC Bloomberg vs. HSBC SP 500 | HSBC Bloomberg vs. HSBC MSCI Emerging | HSBC Bloomberg vs. HSBC NASDAQ Global |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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