Correlation Between Visa and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Pengxin International Mining, you can compare the effects of market volatilities on Visa and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Pengxin International.
Diversification Opportunities for Visa and Pengxin International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Pengxin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Visa i.e., Visa and Pengxin International go up and down completely randomly.
Pair Corralation between Visa and Pengxin International
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.34 times more return on investment than Pengxin International. However, Visa Class A is 2.98 times less risky than Pengxin International. It trades about 0.1 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.01 per unit of risk. If you would invest 22,047 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 9,461 from holding Visa Class A or generate 42.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.99% |
| Values | Daily Returns |
Visa Class A vs. Pengxin International Mining
Performance |
| Timeline |
| Visa Class A |
| Pengxin International |
Visa and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Pengxin International
The main advantage of trading using opposite Visa and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| 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 | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |