Correlation Between Hsbc Funds and Guidepath Multi

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

By analyzing existing cross correlation between Hsbc Funds and Guidepath Multi Asset Income, you can compare the effects of market volatilities on Hsbc Funds and Guidepath Multi 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 Funds with a short position of Guidepath Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsbc Funds and Guidepath Multi.

Diversification Opportunities for Hsbc Funds and Guidepath Multi

0.53

Correlation Coefficient

Hsbc Funds  Guidepath Multi

Very weak diversification

The 3 months correlation between Hsbc and Guidepath is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hsbc Funds and Guidepath Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Multi Asset and Hsbc Funds 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 Funds are associated (or correlated) with Guidepath Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Multi Asset has no effect on the direction of Hsbc Funds i.e., Hsbc Funds and Guidepath Multi go up and down completely randomly.

Pair Corralation between Hsbc Funds and Guidepath Multi

Assuming the 90 days horizon Hsbc Funds is expected to generate 5.99 times less return on investment than Guidepath Multi. But when comparing it to its historical volatility, Hsbc Funds is 2.97 times less risky than Guidepath Multi. It trades about 0.13 of its potential returns per unit of risk. Guidepath Multi Asset Income is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,084  in Guidepath Multi Asset Income on April 28, 2025 and sell it today you would earn a total of  67.00  from holding Guidepath Multi Asset Income or generate 6.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hsbc Funds   vs.  Guidepath Multi Asset Income

Hsbc Funds

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hsbc Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hsbc Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guidepath Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Multi Asset Income are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Guidepath Multi 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 Funds and Guidepath Multi

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

The idea behind Hsbc Funds and Guidepath Multi Asset Income 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..