Correlation Between Visa and Zhuhai Bojay
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By analyzing existing cross correlation between Visa Class A and Zhuhai Bojay Electronics, you can compare the effects of market volatilities on Visa and Zhuhai Bojay 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 Zhuhai Bojay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Zhuhai Bojay.
Diversification Opportunities for Visa and Zhuhai Bojay
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Zhuhai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Zhuhai Bojay Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Bojay Electronics 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 Zhuhai Bojay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Bojay Electronics has no effect on the direction of Visa i.e., Visa and Zhuhai Bojay go up and down completely randomly.
Pair Corralation between Visa and Zhuhai Bojay
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.25 times more return on investment than Zhuhai Bojay. However, Visa Class A is 3.93 times less risky than Zhuhai Bojay. It trades about -0.12 of its potential returns per unit of risk. Zhuhai Bojay Electronics is currently generating about -0.23 per unit of risk. If you would invest 31,474 in Visa Class A on October 14, 2024 and sell it today you would lose (703.00) from holding Visa Class A or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Visa Class A vs. Zhuhai Bojay Electronics
Performance |
| Timeline |
| Visa Class A |
| Zhuhai Bojay Electronics |
Visa and Zhuhai Bojay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Zhuhai Bojay
The main advantage of trading using opposite Visa and Zhuhai Bojay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Zhuhai Bojay 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 Zhuhai Bojay will offset losses from the drop in Zhuhai Bojay's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Zhuhai Bojay vs. Guangzhou Jointas Chemical | Zhuhai Bojay vs. Guizhou Chanhen Chemical | Zhuhai Bojay vs. Fiberhome Telecommunication Technologies | Zhuhai Bojay vs. Runjian Communication 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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