Correlation Between Visa and Ningbo Boway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Ningbo Boway Alloy, you can compare the effects of market volatilities on Visa and Ningbo Boway 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 Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ningbo Boway.
Diversification Opportunities for Visa and Ningbo Boway
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Ningbo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy 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 Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of Visa i.e., Visa and Ningbo Boway go up and down completely randomly.
Pair Corralation between Visa and Ningbo Boway
Taking into account the 90-day investment horizon Visa is expected to generate 2.11 times less return on investment than Ningbo Boway. But when comparing it to its historical volatility, Visa Class A is 5.36 times less risky than Ningbo Boway. It trades about 0.08 of its potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,661 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 340.00 from holding Ningbo Boway Alloy or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Visa Class A vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Visa Class A |
| Ningbo Boway Alloy |
Visa and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ningbo Boway
The main advantage of trading using opposite Visa and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ningbo Boway 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 Boway will offset losses from the drop in Ningbo Boway's long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |