Correlation Between HSBC MSCI and HSBC Multi
Can any of the company-specific risk be diversified away by investing in both HSBC MSCI and HSBC Multi 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 HSBC Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC MSCI World and HSBC Multi Factor, you can compare the effects of market volatilities on HSBC MSCI and HSBC Multi 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 HSBC Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC MSCI and HSBC Multi.
Diversification Opportunities for HSBC MSCI and HSBC Multi
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 MSCI World and HSBC Multi Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Multi Factor 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 World are associated (or correlated) with HSBC Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Multi Factor has no effect on the direction of HSBC MSCI i.e., HSBC MSCI and HSBC Multi go up and down completely randomly.
Pair Corralation between HSBC MSCI and HSBC Multi
If you would invest 3,537 in HSBC MSCI World on September 19, 2024 and sell it today you would earn a total of 108.00 from holding HSBC MSCI World or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
HSBC MSCI World vs. HSBC Multi Factor
Performance |
| Timeline |
| HSBC MSCI World |
| HSBC Multi Factor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HSBC MSCI and HSBC Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HSBC MSCI and HSBC Multi
The main advantage of trading using opposite HSBC MSCI and HSBC Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC MSCI position performs unexpectedly, HSBC Multi 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 Multi will offset losses from the drop in HSBC Multi'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 MSCI Japan |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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