Correlation Between Visa and Guangzhou Jinyi
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By analyzing existing cross correlation between Visa Class A and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Visa and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Guangzhou Jinyi.
Diversification Opportunities for Visa and Guangzhou Jinyi
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Guangzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Visa i.e., Visa and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Visa and Guangzhou Jinyi
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.38 times more return on investment than Guangzhou Jinyi. However, Visa Class A is 2.64 times less risky than Guangzhou Jinyi. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.03 per unit of risk. If you would invest 27,024 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 4,295 from holding Visa Class A or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Visa Class A vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Visa Class A |
| Guangzhou Jinyi Media |
Visa and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Guangzhou Jinyi
The main advantage of trading using opposite Visa and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Industrial and Commercial | Guangzhou Jinyi vs. Bank of China | Guangzhou Jinyi vs. PetroChina 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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