Correlation Between Visa and Jiangsu Broadcasting
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By analyzing existing cross correlation between Visa Class A and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Visa and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jiangsu Broadcasting.
Diversification Opportunities for Visa and Jiangsu Broadcasting
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Jiangsu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Visa i.e., Visa and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Visa and Jiangsu Broadcasting
Taking into account the 90-day investment horizon Visa is expected to generate 1.65 times less return on investment than Jiangsu Broadcasting. But when comparing it to its historical volatility, Visa Class A is 1.55 times less risky than Jiangsu Broadcasting. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Jiangsu Broadcasting Cable on September 2, 2024 and sell it today you would earn a total of 74.00 from holding Jiangsu Broadcasting Cable or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Visa Class A vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Visa Class A |
| Jiangsu Broadcasting |
Visa and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jiangsu Broadcasting
The main advantage of trading using opposite Visa and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Jiangsu Broadcasting vs. Lutian Machinery Co | Jiangsu Broadcasting vs. China Longyuan Power | Jiangsu Broadcasting vs. PetroChina Co Ltd | Jiangsu Broadcasting vs. Bank of China |
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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