Correlation Between Visa and Kweichow Moutai
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By analyzing existing cross correlation between Visa Class A and Kweichow Moutai Co, you can compare the effects of market volatilities on Visa and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kweichow Moutai.
Diversification Opportunities for Visa and Kweichow Moutai
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Kweichow is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Visa i.e., Visa and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Visa and Kweichow Moutai
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.84 times more return on investment than Kweichow Moutai. However, Visa Class A is 1.2 times less risky than Kweichow Moutai. It trades about 0.37 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.12 per unit of risk. If you would invest 28,365 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 2,954 from holding Visa Class A or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Kweichow Moutai Co
Performance |
| Timeline |
| Visa Class A |
| Kweichow Moutai |
Visa and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kweichow Moutai
The main advantage of trading using opposite Visa and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Kweichow Moutai vs. Xiangyang Automobile Bearing | Kweichow Moutai vs. Northking Information Technology | Kweichow Moutai vs. Niutech Environment Technology | Kweichow Moutai vs. Western Superconducting Tech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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