Correlation Between Visa and Weihai Guangwei
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By analyzing existing cross correlation between Visa Class A and Weihai Guangwei Composites, you can compare the effects of market volatilities on Visa and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Weihai Guangwei.
Diversification Opportunities for Visa and Weihai Guangwei
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Weihai is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Visa i.e., Visa and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Visa and Weihai Guangwei
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.47 times more return on investment than Weihai Guangwei. However, Visa Class A is 2.11 times less risky than Weihai Guangwei. It trades about 0.33 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.13 per unit of risk. If you would invest 34,247 in Visa Class A on December 1, 2024 and sell it today you would earn a total of 2,024 from holding Visa Class A or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Visa Class A vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Visa Class A |
| Weihai Guangwei Comp |
Visa and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Weihai Guangwei
The main advantage of trading using opposite Visa and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Weihai Guangwei vs. Western Mining Co | Weihai Guangwei vs. Guizhou Chanhen Chemical | Weihai Guangwei vs. Lianhe Chemical Technology | Weihai Guangwei vs. HeBei Jinniu Chemical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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