Correlation Between HSBC Holdings and Banco Bilbao
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By analyzing existing cross correlation between HSBC Holdings plc and Banco Bilbao Vizcaya, you can compare the effects of market volatilities on HSBC Holdings and Banco Bilbao 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 Holdings with a short position of Banco Bilbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC Holdings and Banco Bilbao.
Diversification Opportunities for HSBC Holdings and Banco Bilbao
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HSBC and Banco is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings plc and Banco Bilbao Vizcaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bilbao Vizcaya and HSBC Holdings 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 Holdings plc are associated (or correlated) with Banco Bilbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bilbao Vizcaya has no effect on the direction of HSBC Holdings i.e., HSBC Holdings and Banco Bilbao go up and down completely randomly.
Pair Corralation between HSBC Holdings and Banco Bilbao
Assuming the 90 days trading horizon HSBC Holdings plc is expected to generate 0.51 times more return on investment than Banco Bilbao. However, HSBC Holdings plc is 1.95 times less risky than Banco Bilbao. It trades about 0.41 of its potential returns per unit of risk. Banco Bilbao Vizcaya is currently generating about 0.2 per unit of risk. If you would invest 997.00 in HSBC Holdings plc on December 4, 2024 and sell it today you would earn a total of 132.00 from holding HSBC Holdings plc or generate 13.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
HSBC Holdings plc vs. Banco Bilbao Vizcaya
Performance |
Timeline |
HSBC Holdings plc |
Banco Bilbao Vizcaya |
HSBC Holdings and Banco Bilbao Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HSBC Holdings and Banco Bilbao
The main advantage of trading using opposite HSBC Holdings and Banco Bilbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC Holdings position performs unexpectedly, Banco Bilbao 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 Banco Bilbao will offset losses from the drop in Banco Bilbao's long position.HSBC Holdings vs. Coeur Mining | HSBC Holdings vs. DISTRICT METALS | HSBC Holdings vs. Calibre Mining Corp | HSBC Holdings vs. Infrastrutture Wireless Italiane |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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