In the field of modern investment management, risk management is a very important concept, and investors need to reduce losses and maximize profits through risk management. This is why the measurement method of HXR is very important for investors. By determining the risk correlation between different assets, HXR can help investors better understand the risks and returns in their portfolios. Investors can use HXR to optimize their asset allocation and reduce cross risks between different assets.
In practical application, HXR can be used to measure the risk between different portfolios. Investors can use HXR to analyze the correlation and risk exposure of various assets in the portfolio. For example, investors can invest in stocks and funds. Through HXR analysis, they can understand the risk correlation between these two assets and their impact on the entire portfolio. In addition, HXR method can also be used to determine the risk exposure of different asset classes, such as stocks, bonds, foreign exchange, market risk, credit risk and liquidity risk.