Correlation Between Hsbc Us and First Eagle

Can any of the company-specific risk be diversified away by investing in both Hsbc Us and First Eagle 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 Us and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hsbc Treasury Money and First Eagle Global, you can compare the effects of market volatilities on Hsbc Us and First Eagle 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 Us with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsbc Us and First Eagle.

Diversification Opportunities for Hsbc Us and First Eagle

0.0

Correlation Coefficient

Hsbc Us  First Eagle

Pay attention - limited upside

The 3 months correlation between Hsbc and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hsbc Treasury Money and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Hsbc Us 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 Treasury Money are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Global has no effect on the direction of Hsbc Us i.e., Hsbc Us and First Eagle go up and down completely randomly.

Pair Corralation between Hsbc Us and First Eagle

If you would invest  1,367  in First Eagle Global on December 3, 2024 and sell it today you would earn a total of  15.00  from holding First Eagle Global or generate 1.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Hsbc Treasury Money  vs.  First Eagle Global

Hsbc Treasury Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hsbc Treasury Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hsbc Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Eagle Global

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Global are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hsbc Us and First Eagle

The main advantage of trading using opposite Hsbc Us and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsbc Us position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.

The idea behind Hsbc Treasury Money and First Eagle Global 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.