Correlation Between Visa and Jiangsu Jinling
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By analyzing existing cross correlation between Visa Class A and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Visa and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jiangsu Jinling.
Diversification Opportunities for Visa and Jiangsu Jinling
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Jiangsu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Visa i.e., Visa and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Visa and Jiangsu Jinling
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.6 times more return on investment than Jiangsu Jinling. However, Visa Class A is 1.66 times less risky than Jiangsu Jinling. It trades about 0.33 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.0 per unit of risk. If you would invest 28,268 in Visa Class A on August 25, 2024 and sell it today you would earn a total of 2,724 from holding Visa Class A or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Visa Class A vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Visa Class A |
| Jiangsu Jinling Sports |
Visa and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jiangsu Jinling
The main advantage of trading using opposite Visa and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Jiangsu Jinling vs. Western Metal Materials | Jiangsu Jinling vs. Dalian Thermal Power | Jiangsu Jinling vs. Shanghai Yanpu Metal | Jiangsu Jinling vs. China Publishing Media |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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