Correlation Between Visa and Anshan Senyuan

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Visa and Anshan Senyuan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and Anshan Senyuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Anshan Senyuan Road, you can compare the effects of market volatilities on Visa and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Anshan Senyuan.

Diversification Opportunities for Visa and Anshan Senyuan

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Visa and Anshan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Visa i.e., Visa and Anshan Senyuan go up and down completely randomly.

Pair Corralation between Visa and Anshan Senyuan

Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.27 times more return on investment than Anshan Senyuan. However, Visa Class A is 3.71 times less risky than Anshan Senyuan. It trades about -0.02 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.35 per unit of risk. If you would invest  31,379  in Visa Class A on October 12, 2024 and sell it today you would lose (119.00) from holding Visa Class A or give up 0.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Visa Class A  vs.  Anshan Senyuan Road

 Performance 
       Timeline  
Visa Class A 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Anshan Senyuan Road 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Anshan Senyuan Road has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Anshan Senyuan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Visa and Anshan Senyuan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Visa and Anshan Senyuan

The main advantage of trading using opposite Visa and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.
Visa vs. American Express
Visa vs. PayPal Holdings
Visa vs. Capital One Financial
Visa vs. Upstart Holdings
The idea behind Visa Class A and Anshan Senyuan Road pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Anshan Senyuan vs. Beijing Mainstreets Investment
Anshan Senyuan vs. Ye Chiu Metal
Anshan Senyuan vs. Rising Nonferrous Metals
Anshan Senyuan vs. Guangdong Jingyi Metal
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Commodity Directory
Find actively traded commodities issued by global exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY