Correlation Between Visa and Guangzhou Haozhi
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By analyzing existing cross correlation between Visa Class A and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Visa and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Guangzhou Haozhi.
Diversification Opportunities for Visa and Guangzhou Haozhi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Visa i.e., Visa and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Visa and Guangzhou Haozhi
Taking into account the 90-day investment horizon Visa is expected to generate 3.32 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Visa Class A is 3.73 times less risky than Guangzhou Haozhi. It trades about 0.5 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 1,700 in Guangzhou Haozhi Industrial on November 7, 2024 and sell it today you would earn a total of 489.00 from holding Guangzhou Haozhi Industrial or generate 28.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Visa Class A vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Visa Class A |
| Guangzhou Haozhi Ind |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Visa and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Guangzhou Haozhi
The main advantage of trading using opposite Visa and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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