Correlation Between Visa and Hwabao WP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Hwabao WP CSI, you can compare the effects of market volatilities on Visa and Hwabao WP 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 Hwabao WP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Hwabao WP.
Diversification Opportunities for Visa and Hwabao WP
Very weak diversification
The 3 months correlation between Visa and Hwabao is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Hwabao WP CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwabao WP CSI 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 Hwabao WP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwabao WP CSI has no effect on the direction of Visa i.e., Visa and Hwabao WP go up and down completely randomly.
Pair Corralation between Visa and Hwabao WP
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.52 times more return on investment than Hwabao WP. However, Visa Class A is 1.94 times less risky than Hwabao WP. It trades about 0.35 of its potential returns per unit of risk. Hwabao WP CSI is currently generating about 0.01 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Visa Class A vs. Hwabao WP CSI
Performance |
| Timeline |
| Visa Class A |
| Hwabao WP CSI |
Visa and Hwabao WP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Hwabao WP
The main advantage of trading using opposite Visa and Hwabao WP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Hwabao WP 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 Hwabao WP will offset losses from the drop in Hwabao WP's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Hwabao WP vs. Ming Yang Smart | Hwabao WP vs. 159681 | Hwabao WP vs. 159005 | Hwabao WP vs. Loctek Ergonomic Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |