Correlation Between Visa and China Minsheng
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By analyzing existing cross correlation between Visa Class A and China Minsheng Banking, you can compare the effects of market volatilities on Visa and China Minsheng 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 China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and China Minsheng.
Diversification Opportunities for Visa and China Minsheng
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Visa i.e., Visa and China Minsheng go up and down completely randomly.
Pair Corralation between Visa and China Minsheng
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.72 times more return on investment than China Minsheng. However, Visa Class A is 1.38 times less risky than China Minsheng. It trades about 0.11 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.02 per unit of risk. If you would invest 26,932 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 4,576 from holding Visa Class A or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Visa Class A vs. China Minsheng Banking
Performance |
| Timeline |
| Visa Class A |
| China Minsheng Banking |
Visa and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and China Minsheng
The main advantage of trading using opposite Visa and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| China Minsheng vs. V V Food | China Minsheng vs. Juewei Food Co | China Minsheng vs. 360 Security Technology | China Minsheng vs. Guangdong Xiongsu 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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