Correlation Between Visa and Lecron Energy
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By analyzing existing cross correlation between Visa Class A and Lecron Energy Saving, you can compare the effects of market volatilities on Visa and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Lecron Energy.
Diversification Opportunities for Visa and Lecron Energy
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Lecron is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Visa i.e., Visa and Lecron Energy go up and down completely randomly.
Pair Corralation between Visa and Lecron Energy
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.33 times more return on investment than Lecron Energy. However, Visa Class A is 2.99 times less risky than Lecron Energy. It trades about -0.02 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.44 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. Lecron Energy Saving
Performance |
| Timeline |
| Visa Class A |
| Lecron Energy Saving |
Visa and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Lecron Energy
The main advantage of trading using opposite Visa and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Lecron Energy vs. Hunan Investment Group | Lecron Energy vs. Zhongrun Resources Investment | Lecron Energy vs. Beijing Mainstreets Investment | Lecron Energy vs. Allwin Telecommunication 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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