Correlation Between Visa and Ningbo Thermal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Ningbo Thermal Power, you can compare the effects of market volatilities on Visa and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ningbo Thermal.
Diversification Opportunities for Visa and Ningbo Thermal
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Visa and Ningbo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Visa i.e., Visa and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Visa and Ningbo Thermal
Taking into account the 90-day investment horizon Visa is expected to generate 1.12 times less return on investment than Ningbo Thermal. But when comparing it to its historical volatility, Visa Class A is 2.1 times less risky than Ningbo Thermal. It trades about 0.08 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 332.00 in Ningbo Thermal Power on November 3, 2024 and sell it today you would earn a total of 65.00 from holding Ningbo Thermal Power or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.76% |
| Values | Daily Returns |
Visa Class A vs. Ningbo Thermal Power
Performance |
| Timeline |
| Visa Class A |
| Ningbo Thermal Power |
Visa and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ningbo Thermal
The main advantage of trading using opposite Visa and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Ningbo Thermal vs. Thunder Software Technology | Ningbo Thermal vs. Wuhan Yangtze Communication | Ningbo Thermal vs. Fibocom Wireless | Ningbo Thermal vs. Jiangsu Hoperun Software |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |