Correlation Between VanEck Crypto and HSBC ETFs

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Can any of the company-specific risk be diversified away by investing in both VanEck Crypto and HSBC ETFs 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 VanEck Crypto and HSBC ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Crypto Blockchain and HSBC ETFs Public, you can compare the effects of market volatilities on VanEck Crypto and HSBC ETFs 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 VanEck Crypto with a short position of HSBC ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Crypto and HSBC ETFs.

Diversification Opportunities for VanEck Crypto and HSBC ETFs

VanEckHSBCDiversified AwayVanEckHSBCDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between VanEck and HSBC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Crypto Blockchain and HSBC ETFs Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC ETFs Public and VanEck Crypto 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 VanEck Crypto Blockchain are associated (or correlated) with HSBC ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC ETFs Public has no effect on the direction of VanEck Crypto i.e., VanEck Crypto and HSBC ETFs go up and down completely randomly.

Pair Corralation between VanEck Crypto and HSBC ETFs

Assuming the 90 days trading horizon VanEck Crypto Blockchain is expected to under-perform the HSBC ETFs. In addition to that, VanEck Crypto is 4.88 times more volatile than HSBC ETFs Public. It trades about -0.23 of its total potential returns per unit of risk. HSBC ETFs Public is currently generating about -0.25 per unit of volatility. If you would invest  5,847  in HSBC ETFs Public on December 9, 2024 and sell it today you would lose (361.00) from holding HSBC ETFs Public or give up 6.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

VanEck Crypto Blockchain  vs.  HSBC ETFs Public

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15DAPP HMUD
       Timeline  
VanEck Crypto Blockchain 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days VanEck Crypto Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar8910111213
HSBC ETFs Public 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days HSBC ETFs Public has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar5555.55656.55757.55858.55959.5

VanEck Crypto and HSBC ETFs Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.88-6.65-4.42-2.190.02.04.016.018.02 0.10.20.30.4
JavaScript chart by amCharts 3.21.15DAPP HMUD
       Returns  

Pair Trading with VanEck Crypto and HSBC ETFs

The main advantage of trading using opposite VanEck Crypto and HSBC ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Crypto position performs unexpectedly, HSBC ETFs 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 ETFs will offset losses from the drop in HSBC ETFs' long position.
The idea behind VanEck Crypto Blockchain and HSBC ETFs Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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