Correlation Between Visa and Sichuan Jinshi
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By analyzing existing cross correlation between Visa Class A and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Visa and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Sichuan Jinshi.
Diversification Opportunities for Visa and Sichuan Jinshi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Sichuan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Visa i.e., Visa and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Visa and Sichuan Jinshi
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.38 times more return on investment than Sichuan Jinshi. However, Visa Class A is 2.62 times less risky than Sichuan Jinshi. It trades about 0.1 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 22,047 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 9,461 from holding Visa Class A or generate 42.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.99% |
| Values | Daily Returns |
Visa Class A vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Visa Class A |
| Sichuan Jinshi Technology |
Visa and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Sichuan Jinshi
The main advantage of trading using opposite Visa and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Sichuan Jinshi vs. Guilin Seamild Foods | Sichuan Jinshi vs. Zhengzhou Qianweiyangchu Food | Sichuan Jinshi vs. HaiXin Foods Co | Sichuan Jinshi vs. Ligao Foods CoLtd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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