Correlation Between Visa and Peijia Medical
Can any of the company-specific risk be diversified away by investing in both Visa and Peijia Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and Peijia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Peijia Medical Limited, you can compare the effects of market volatilities on Visa and Peijia Medical 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 Peijia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Peijia Medical.
Diversification Opportunities for Visa and Peijia Medical
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Peijia is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Peijia Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peijia Medical 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 Peijia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peijia Medical has no effect on the direction of Visa i.e., Visa and Peijia Medical go up and down completely randomly.
Pair Corralation between Visa and Peijia Medical
Taking into account the 90-day investment horizon Visa is expected to generate 20.63 times less return on investment than Peijia Medical. But when comparing it to its historical volatility, Visa Class A is 2.7 times less risky than Peijia Medical. It trades about 0.01 of its potential returns per unit of risk. Peijia Medical Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Peijia Medical Limited on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Peijia Medical Limited or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Visa Class A vs. Peijia Medical Limited
Performance |
| Timeline |
| Visa Class A |
| Peijia Medical |
Visa and Peijia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Peijia Medical
The main advantage of trading using opposite Visa and Peijia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Peijia Medical 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 Peijia Medical will offset losses from the drop in Peijia Medical's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Peijia Medical vs. Hitachi Construction Machinery | Peijia Medical vs. AGRICULTBK HADR25 YC | Peijia Medical vs. ecotel communication ag | Peijia Medical vs. North American Construction |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |