Correlation Between Hsbc Us and Carillon Eagle

Can any of the company-specific risk be diversified away by investing in both Hsbc Us and Carillon 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 Carillon 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 Carillon Eagle Mid, you can compare the effects of market volatilities on Hsbc Us and Carillon 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 Carillon Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsbc Us and Carillon Eagle.

Diversification Opportunities for Hsbc Us and Carillon Eagle

0.0

Correlation Coefficient

Hsbc Us  Carillon Eagle

Pay attention - limited upside

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

Pair Corralation between Hsbc Us and Carillon Eagle

If you would invest (100.00) in Carillon Eagle Mid on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Carillon Eagle Mid or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hsbc Treasury Money  vs.  Carillon Eagle Mid

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.

Carillon Eagle Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carillon Eagle Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Carillon 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 Carillon Eagle

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

The idea behind Hsbc Treasury Money and Carillon Eagle Mid 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.