Correlation Between Visa and East Money
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By analyzing existing cross correlation between Visa Class A and East Money Information, you can compare the effects of market volatilities on Visa and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and East Money.
Diversification Opportunities for Visa and East Money
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and East is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Visa i.e., Visa and East Money go up and down completely randomly.
Pair Corralation between Visa and East Money
Taking into account the 90-day investment horizon Visa is expected to generate 2.08 times less return on investment than East Money. But when comparing it to its historical volatility, Visa Class A is 4.39 times less risky than East Money. It trades about 0.35 of its potential returns per unit of risk. East Money Information is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,319 in East Money Information on September 1, 2024 and sell it today you would earn a total of 407.00 from holding East Money Information or generate 17.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Visa Class A vs. East Money Information
Performance |
Timeline |
Visa Class A |
East Money Information |
Visa and East Money Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and East Money
The main advantage of trading using opposite Visa and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
East Money vs. Cambricon Technologies Corp | East Money vs. Loongson Technology Corp | East Money vs. Shenzhen Fortune Trend | East Money vs. Chongqing Road Bridge |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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