Correlation Between Visa and Nantong Jiangshan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Nantong Jiangshan Agrochemical, you can compare the effects of market volatilities on Visa and Nantong Jiangshan 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 Nantong Jiangshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Nantong Jiangshan.
Diversification Opportunities for Visa and Nantong Jiangshan
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Nantong is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Nantong Jiangshan Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Jiangshan 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 Nantong Jiangshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Jiangshan has no effect on the direction of Visa i.e., Visa and Nantong Jiangshan go up and down completely randomly.
Pair Corralation between Visa and Nantong Jiangshan
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.43 times more return on investment than Nantong Jiangshan. However, Visa Class A is 2.3 times less risky than Nantong Jiangshan. It trades about 0.1 of its potential returns per unit of risk. Nantong Jiangshan Agrochemical is currently generating about -0.06 per unit of risk. If you would invest 21,661 in Visa Class A on November 19, 2024 and sell it today you would earn a total of 13,720 from holding Visa Class A or generate 63.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
Visa Class A vs. Nantong Jiangshan Agrochemical
Performance |
| Timeline |
| Visa Class A |
| Nantong Jiangshan |
Visa and Nantong Jiangshan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Nantong Jiangshan
The main advantage of trading using opposite Visa and Nantong Jiangshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Nantong Jiangshan 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 Nantong Jiangshan will offset losses from the drop in Nantong Jiangshan's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |