Correlation Between Visa and Guangdong Jingyi
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By analyzing existing cross correlation between Visa Class A and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Visa and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Guangdong Jingyi.
Diversification Opportunities for Visa and Guangdong Jingyi
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Visa and Guangdong is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Visa i.e., Visa and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Visa and Guangdong Jingyi
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.37 times more return on investment than Guangdong Jingyi. However, Visa Class A is 2.74 times less risky than Guangdong Jingyi. It trades about 0.09 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 22,579 in Visa Class A on November 2, 2024 and sell it today you would earn a total of 11,913 from holding Visa Class A or generate 52.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.96% |
| Values | Daily Returns |
Visa Class A vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Visa Class A |
| Guangdong Jingyi Metal |
Visa and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Guangdong Jingyi
The main advantage of trading using opposite Visa and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Guangdong Jingyi vs. Sinomach Automobile Co | Guangdong Jingyi vs. Pengxin International Mining | Guangdong Jingyi vs. Fiberhome Telecommunication Technologies | Guangdong Jingyi vs. Shengda Mining Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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