Correlation Between HSBC MSCI and HSBC Emerging

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both HSBC MSCI and HSBC Emerging 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 Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HSBC MSCI Turkey and HSBC Emerging Market, you can compare the effects of market volatilities on HSBC MSCI and HSBC Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of HSBC MSCI and HSBC Emerging.

Diversification Opportunities for HSBC MSCI and HSBC Emerging

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 Turkey and HSBC Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Emerging Market 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 Turkey are associated (or correlated) with HSBC Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Emerging Market has no effect on the direction of HSBC MSCI i.e., HSBC MSCI and HSBC Emerging go up and down completely randomly.

Pair Corralation between HSBC MSCI and HSBC Emerging

If you would invest  1,523  in HSBC Emerging Market on December 28, 2024 and sell it today you would earn a total of  95.00  from holding HSBC Emerging Market or generate 6.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

HSBC MSCI Turkey  vs.  HSBC Emerging Market

 Performance 
       Timeline  
HSBC MSCI Turkey 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days HSBC MSCI Turkey has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, HSBC MSCI is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
HSBC Emerging Market 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HSBC Emerging Market are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, HSBC Emerging may actually be approaching a critical reversion point that can send shares even higher in April 2025.

HSBC MSCI and HSBC Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HSBC MSCI and HSBC Emerging

The main advantage of trading using opposite HSBC MSCI and HSBC Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HSBC MSCI position performs unexpectedly, HSBC Emerging 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 Emerging will offset losses from the drop in HSBC Emerging's long position.
The idea behind HSBC MSCI Turkey and HSBC Emerging Market 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.
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device