Correlation Between Visa and Jinlong Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Visa and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jinlong Machinery.
Diversification Opportunities for Visa and Jinlong Machinery
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Visa and Jinlong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Visa i.e., Visa and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Visa and Jinlong Machinery
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.23 times more return on investment than Jinlong Machinery. However, Visa Class A is 4.35 times less risky than Jinlong Machinery. It trades about 0.01 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.3 per unit of risk. If you would invest 31,238 in Visa Class A on October 11, 2024 and sell it today you would earn a total of 22.00 from holding Visa Class A or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Visa Class A |
| Jinlong Machinery |
Visa and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jinlong Machinery
The main advantage of trading using opposite Visa and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |