Correlation Between Visa and Shenzhen Kexin
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By analyzing existing cross correlation between Visa Class A and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Visa and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Shenzhen Kexin.
Diversification Opportunities for Visa and Shenzhen Kexin
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Visa i.e., Visa and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Visa and Shenzhen Kexin
Taking into account the 90-day investment horizon Visa is expected to generate 1.79 times less return on investment than Shenzhen Kexin. But when comparing it to its historical volatility, Visa Class A is 4.56 times less risky than Shenzhen Kexin. It trades about 0.27 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,159 in Shenzhen Kexin Communication on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Shenzhen Kexin Communication or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.37% |
| Values | Daily Returns |
Visa Class A vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Visa Class A |
| Shenzhen Kexin Commu |
Visa and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Shenzhen Kexin
The main advantage of trading using opposite Visa and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Shenzhen Kexin vs. Shenzhen MYS Environmental | Shenzhen Kexin vs. AVIC Fund Management | Shenzhen Kexin vs. Shenzhen Bingchuan Network | Shenzhen Kexin vs. Penghua Shenzhen Energy |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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