Correlation Between Kinetics Small and Hsbc Us

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

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

Diversification Opportunities for Kinetics Small and Hsbc Us

0.0

Correlation Coefficient

Kinetics Small  Hsbc Us

Pay attention - limited upside

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

Pair Corralation between Kinetics Small and Hsbc Us

If you would invest  17,905  in Kinetics Small Cap on December 20, 2024 and sell it today you would earn a total of  1,855  from holding Kinetics Small Cap or generate 10.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Kinetics Small Cap  vs.  Hsbc Treasury Money

Kinetics Small Cap

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Small Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Small may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Kinetics Small and Hsbc Us

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

The idea behind Kinetics Small Cap and Hsbc Treasury Money 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.