Correlation Between Visa and Ningbo Ligong
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By analyzing existing cross correlation between Visa Class A and Ningbo Ligong Online, you can compare the effects of market volatilities on Visa and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ningbo Ligong.
Diversification Opportunities for Visa and Ningbo Ligong
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Ningbo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Visa i.e., Visa and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Visa and Ningbo Ligong
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.74 times more return on investment than Ningbo Ligong. However, Visa Class A is 1.35 times less risky than Ningbo Ligong. It trades about 0.34 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.18 per unit of risk. If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Ningbo Ligong Online
Performance |
| Timeline |
| Visa Class A |
| Ningbo Ligong Online |
Visa and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ningbo Ligong
The main advantage of trading using opposite Visa and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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