HSBC Holdings Correlations

HSBC Stock

USD 46.68 0.36 0.78%

The current 90-days correlation between HSBC Holdings PLC and Banco Santander SA is 0.53 (i.e., Very weak diversification). 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

HSBC Holdings Correlation With Market

Modest diversification

The correlation between HSBC Holdings PLC and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HSBC Holdings PLC and DJI in the same portfolio, assuming nothing else is changed.

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 closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with HSBC Stock

0.75	C	Citigroup Aggressive Push	Pair Corr
0.68	CM	Canadian Imperial Bank Earnings Call This Week	Pair Corr
0.67	BML-PG	Bank of America	Pair Corr
0.75	EWBC	East West Bancorp Fiscal Year End 28th of January 2025	Pair Corr
0.69	BAC	Bank of America Aggressive Push	Pair Corr
0.74	BCS	Barclays PLC ADR	Pair Corr
0.71	BMO	Bank of Montreal Earnings Call This Week	Pair Corr
0.7	BNS	Bank of Nova Scotia Earnings Call This Week	Pair Corr
0.65	JPM	JPMorgan Chase Sell-off Trend	Pair Corr
0.64	JPM-PC	JPMorgan Chase	Pair Corr
0.83	NWG	Natwest Group PLC	Pair Corr
0.71	WFC	Wells Fargo Sell-off Trend	Pair Corr
0.65	MUFG	Mitsubishi UFJ Financial	Pair Corr

Moving against HSBC Stock

0.63	ING	ING Group NV	Pair Corr
0.56	JPM-PM	JPMorgan Chase	Pair Corr
0.5	JPM-PK	JPMorgan Chase	Pair Corr
0.49	JPM-PL	JPMorgan Chase	Pair Corr
0.47	BAC-PN	Bank of America	Pair Corr
0.44	TD	Toronto Dominion Bank Earnings Call This Week	Pair Corr
0.43	JPM-PJ	JPMorgan Chase	Pair Corr
0.37	BAC-PM	Bank of America	Pair Corr
0.51	WFC-PZ	Wells Fargo	Pair Corr
0.5	BAC-PQ	Bank of America	Pair Corr
0.49	WFC-PA	Wells Fargo	Pair Corr
0.48	BAC-PP	Bank of America	Pair Corr
0.45	WFC-PC	Wells Fargo	Pair Corr
0.44	BAC-PO	Bank of America	Pair Corr
0.44	EG	Everest Group	Pair Corr
0.39	WFC-PD	Wells Fargo	Pair Corr

Related Correlations Analysis

	ING	NWG	SAN	UBS	CS	BCS	C	BBVA	BAC	WFC
ING		-0.8	0.45	-0.59	0.29	-0.81	-0.87	0.69	-0.93	-0.95	ING
NWG	-0.8		0.03	0.74	-0.21	0.95	0.88	-0.24	0.87	0.89	NWG
SAN	0.45	0.03		0.22	-0.04	0.0	-0.19	0.83	-0.3	-0.27	SAN
UBS	-0.59	0.74	0.22		-0.11	0.8	0.7	-0.1	0.64	0.69	UBS
CS	0.29	-0.21	-0.04	-0.11		-0.21	-0.17	0.22	-0.25	-0.22	CS
BCS	-0.81	0.95	0.0	0.8	-0.21		0.89	-0.31	0.91	0.92	BCS
C	-0.87	0.88	-0.19	0.7	-0.17	0.89		-0.37	0.94	0.93	C
BBVA	0.69	-0.24	0.83	-0.1	0.22	-0.31	-0.37		-0.54	-0.54	BBVA
BAC	-0.93	0.87	-0.3	0.64	-0.25	0.91	0.94	-0.54		0.99	BAC
WFC	-0.95	0.89	-0.27	0.69	-0.22	0.92	0.93	-0.54	0.99		WFC
	ING	NWG	SAN	UBS	CS	BCS	C	BBVA	BAC	WFC

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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

WFC	+ 0.99	BAC
BCS	+ 0.95	NWG
BAC	+ 0.94	C
WFC	+ 0.93	C
WFC	+ 0.92	BCS
BAC	+ 0.91	BCS

High negative correlations

WFC	- 0.95	ING
BAC	- 0.93	ING
C	- 0.87	ING
BCS	- 0.81	ING
NWG	- 0.8	ING
UBS	- 0.59	ING

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
ING	1.07	(0.25)	0.00	10.16	0.00	0.00	1.53	(2.37)	7.23
NWG	1.44	(0.01)	0.00	0.11	1.76	(1.56)	2.79	(3.04)	8.05
SAN	1.33	(0.04)	0.00	(0.31)	0.00	0.00	2.14	(3.70)	8.69
UBS	1.13	(0.15)	(0.07)	0.00	1.62	(1.11)	2.10	(2.65)	7.85
CS	3.04	(1.25)	0.00	6.64	0.00	0.00	3.53	(5.49)	53.23
BCS	1.69	(0.07)	0.00	0.08	2.14	(1.68)	3.35	(3.62)	10.17
C	1.41	(0.03)	0.05	0.11	1.43	(1.67)	3.56	(1.97)	10.33
BBVA	1.56	(0.11)	0.00	1.82	0.00	0.00	2.94	(3.21)	11.46
BAC	1.08	0.10	0.17	0.19	0.66	(1.36)	2.19	(1.41)	9.84
WFC	1.52	0.24	0.21	0.24	1.31	(1.76)	3.60	(2.18)	16.76

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