HSBC Holdings Correlations

HSBC Stock

USD 57.83 0.22 0.38%

The current 90-days correlation between HSBC Holdings PLC and Banco Santander SA is 0.55 (i.e., Very weak diversification). The correlation of HSBC Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

HSBC Holdings Correlation With Market

Very weak diversification

The correlation between HSBC Holdings PLC and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings PLC and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HSBC Holdings PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with HSBC Stock

0.86	TD	Toronto Dominion Bank	Pair Corr
0.7	BML-PG	Bank of America	Pair Corr
0.64	BML-PH	Bank of America	Pair Corr
0.68	BML-PJ	Bank of America	Pair Corr
0.95	BCS	Barclays PLC ADR	Pair Corr
0.9	ING	ING Group NV	Pair Corr
0.67	JPM-PM	JPMorgan Chase	Pair Corr
0.86	JPM-PC	JPMorgan Chase	Pair Corr
0.7	JPM-PD	JPMorgan Chase	Pair Corr
0.64	NTB	Bank of NT	Pair Corr
0.98	SAN	Banco Santander SA	Pair Corr
0.76	BAC-PB	Bank of America	Pair Corr
0.62	BAC-PM	Bank of America	Pair Corr
0.69	BAC-PK	Bank of America	Pair Corr
0.64	BAC-PL	Bank of America	Pair Corr
0.84	MUFG	Mitsubishi UFJ Financial	Pair Corr
0.84	SMFG	Sumitomo Mitsui Financial	Pair Corr
0.97	BBVA	Banco Bilbao Viscaya	Pair Corr

Moving against HSBC Stock

0.86	BNS	Bank of Nova Scotia	Pair Corr
0.82	CM	Canadian Imperial Bank	Pair Corr
0.66	RY	Royal Bank	Pair Corr
0.57	EWBC	East West Bancorp	Pair Corr
0.5	BML-PL	Bank of America	Pair Corr
0.48	BAC	Bank of America	Pair Corr
0.78	BX	Blackstone Group	Pair Corr
0.75	AX	Axos Financial	Pair Corr
0.63	CG	Carlyle Group	Pair Corr
0.61	DHIL	Diamond Hill Investment	Pair Corr
0.46	BY	Byline Bancorp	Pair Corr
0.43	BN	Brookfield Corp	Pair Corr

Related Correlations Analysis

	ING	NWG	SAN	UBS	CS	BCS	C	BBVA	BAC	WFC
ING		0.87	0.92	0.31	0.0	0.86	-0.16	0.94	-0.66	-0.08	ING
NWG	0.87		0.95	0.38	0.0	0.96	0.06	0.93	-0.47	0.18	NWG
SAN	0.92	0.95		0.36	0.0	0.94	0.06	0.99	-0.5	0.15	SAN
UBS	0.31	0.38	0.36		0.0	0.56	0.74	0.44	0.38	0.72	UBS
CS	0.0	0.0	0.0	0.0		0.0	0.0	0.0	0.0	0.0	CS
BCS	0.86	0.96	0.94	0.56	0.0		0.27	0.94	-0.32	0.37	BCS
C	-0.16	0.06	0.06	0.74	0.0	0.27		0.1	0.76	0.97	C
BBVA	0.94	0.93	0.99	0.44	0.0	0.94	0.1		-0.49	0.17	BBVA
BAC	-0.66	-0.47	-0.5	0.38	0.0	-0.32	0.76	-0.49		0.72	BAC
WFC	-0.08	0.18	0.15	0.72	0.0	0.37	0.97	0.17	0.72		WFC
	ING	NWG	SAN	UBS	CS	BCS	C	BBVA	BAC	WFC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

BBVA	+ 0.99	SAN
WFC	+ 0.97	C
BCS	+ 0.96	NWG
SAN	+ 0.95	NWG
BBVA	+ 0.94	ING
BCS	+ 0.94	SAN

High negative correlations

BAC	- 0.66	ING
BAC	- 0.5	SAN
BAC	- 0.49	BBVA
BAC	- 0.47	NWG
BAC	- 0.32	BCS
C	- 0.16	ING

Risk-Adjusted Indicators

There is a big difference between HSBC Stock performing well and HSBC Holdings Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze HSBC Holdings' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ING	1.21	0.44	0.32	0.59	0.94	(1.35)	3.38	(2.21)	9.18
NWG	1.65	0.38	0.15	0.21	2.13	(1.65)	4.30	(3.62)	10.99
SAN	1.68	0.61	0.30	0.47	1.53	(2.11)	4.24	(2.75)	15.03
UBS	1.41	0.12	0.05	0.05	2.19	(1.47)	3.11	(3.33)	11.01
CS	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
BCS	1.84	0.37	0.15	0.20	2.10	(2.17)	4.50	(3.41)	14.95
C	1.39	0.13	0.05	0.03	2.10	(1.29)	2.45	(3.48)	12.74
BBVA	1.53	0.57	0.34	0.55	1.21	(1.80)	4.05	(2.47)	8.81
BAC	1.13	(0.03)	0.00	(0.09)	0.00	0.00	1.81	(2.37)	10.83
WFC	1.24	0.14	0.07	0.05	1.74	(1.38)	2.32	(2.25)	12.70

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