Correlation Between Visa and Sinotrans
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By analyzing existing cross correlation between Visa Class A and Sinotrans Ltd Class, you can compare the effects of market volatilities on Visa and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Sinotrans.
Diversification Opportunities for Visa and Sinotrans
Weak diversification
The 3 months correlation between Visa and Sinotrans is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of Visa i.e., Visa and Sinotrans go up and down completely randomly.
Pair Corralation between Visa and Sinotrans
Taking into account the 90-day investment horizon Visa is expected to generate 1.37 times less return on investment than Sinotrans. But when comparing it to its historical volatility, Visa Class A is 1.07 times less risky than Sinotrans. It trades about 0.1 of its potential returns per unit of risk. Sinotrans Ltd Class is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Sinotrans Ltd Class on September 28, 2024 and sell it today you would earn a total of 15.00 from holding Sinotrans Ltd Class or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Visa Class A vs. Sinotrans Ltd Class
Performance |
| Timeline |
| Visa Class A |
| Sinotrans Class |
Visa and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Sinotrans
The main advantage of trading using opposite Visa and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
| Sinotrans vs. Ming Yang Smart | Sinotrans vs. 159681 | Sinotrans vs. 159005 | Sinotrans vs. Loctek Ergonomic Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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