HSBC Holdings Correlations
| H1SB34 Stock | BRL 56.65 0.40 0.70% |
The correlation of HSBC Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HSBC Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HSBC Holdings plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Good diversification
The correlation between HSBC Holdings plc and NYA is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings plc and NYA in the same portfolio, assuming nothing else is changed.
HSBC |
The ability to find closely correlated positions to HSBC Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HSBC Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HSBC Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HSBC Holdings plc to buy it.
Moving together with HSBC Stock
| 0.73 | WFCO34 | Wells Fargo | PairCorr |
| 0.77 | B1CS34 | Barclays PLC | PairCorr |
| 0.72 | H1DB34 | HDFC Bank Limited | PairCorr |
| 0.64 | JPMC34 | JPMorgan Chase | PairCorr |
Related Correlations Analysis
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between HSBC Stock performing well and HSBC Holdings Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze HSBC Holdings' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| VERZ34 | 0.98 | (0.05) | 0.00 | (31.45) | 0.00 | 1.71 | 6.97 | |||
| AALL34 | 1.68 | (0.08) | 0.00 | (0.48) | 0.00 | 3.35 | 10.11 | |||
| E1DU34 | 2.26 | 0.24 | 0.05 | 1.08 | 3.13 | 4.56 | 23.83 | |||
| BROF11 | 0.90 | 0.02 | (0.05) | (0.04) | 1.08 | 2.58 | 7.45 | |||
| M1NS34 | 0.97 | 0.02 | (0.04) | 0.24 | 1.03 | 2.37 | 8.10 | |||
| CHCM34 | 1.65 | (0.43) | 0.00 | 0.63 | 0.00 | 2.35 | 16.95 | |||
| S1OU34 | 0.36 | (0.20) | 0.00 | (1.75) | 0.00 | 0.00 | 8.28 | |||
| LEVE3 | 1.39 | (0.09) | 0.00 | (1.28) | 0.00 | 2.36 | 10.67 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in HSBC Holdings without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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HSBC Holdings Corporate Executives
Elected by the shareholders, the HSBC Holdings' board of directors comprises two types of representatives: HSBC Holdings inside directors who are chosen from within the company, and outside directors, selected externally and held independent of HSBC. The board's role is to monitor HSBC Holdings' management team and ensure that shareholders' interests are well served. HSBC Holdings' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, HSBC Holdings' outside directors are responsible for providing unbiased perspectives on the board's policies.
| Ewen Stevenson | Member CFO | Profile |
Already Invested in HSBC Holdings plc?
The danger of trading HSBC Holdings plc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of HSBC Holdings is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than HSBC Holdings. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile HSBC Holdings plc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether HSBC Holdings plc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HSBC Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hsbc Holdings Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hsbc Holdings Plc Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HSBC Holdings plc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the HSBC Holdings plc information on this page should be used as a complementary analysis to other HSBC Holdings' statistical models used 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Complementary Tools for HSBC Stock analysis
When running HSBC Holdings' price analysis, check to measure HSBC Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HSBC Holdings is operating at the current time. Most of HSBC Holdings' value examination focuses on studying past and present price action to predict the probability of HSBC Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HSBC Holdings' price. Additionally, you may evaluate how the addition of HSBC Holdings to your portfolios can decrease your overall portfolio volatility.
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