Correlation Between Visa and Bengang Steel
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By analyzing existing cross correlation between Visa Class A and Bengang Steel Plates, you can compare the effects of market volatilities on Visa and Bengang Steel 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 Visa with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Bengang Steel.
Diversification Opportunities for Visa and Bengang Steel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Bengang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Bengang Steel Plates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bengang Steel Plates and Visa 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 Visa Class A are associated (or correlated) with Bengang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bengang Steel Plates has no effect on the direction of Visa i.e., Visa and Bengang Steel go up and down completely randomly.
Pair Corralation between Visa and Bengang Steel
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.61 times more return on investment than Bengang Steel. However, Visa Class A is 1.65 times less risky than Bengang Steel. It trades about 0.35 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about -0.18 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Visa Class A vs. Bengang Steel Plates
Performance |
| Timeline |
| Visa Class A |
| Bengang Steel Plates |
Visa and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Bengang Steel
The main advantage of trading using opposite Visa and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Bengang Steel 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 Bengang Steel will offset losses from the drop in Bengang Steel's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Bengang Steel vs. Gome Telecom Equipment | Bengang Steel vs. Shenzhen Kexin Communication | Bengang Steel vs. Wuhan Yangtze Communication | Bengang Steel vs. Sportsoul Co Ltd |
Check out your portfolio center.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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