Correlation Between Visa and Ningbo Construction
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By analyzing existing cross correlation between Visa Class A and Ningbo Construction Co, you can compare the effects of market volatilities on Visa and Ningbo Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ningbo Construction.
Diversification Opportunities for Visa and Ningbo Construction
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Ningbo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Visa i.e., Visa and Ningbo Construction go up and down completely randomly.
Pair Corralation between Visa and Ningbo Construction
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.4 times more return on investment than Ningbo Construction. However, Visa Class A is 2.49 times less risky than Ningbo Construction. It trades about 0.09 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.0 per unit of risk. If you would invest 22,629 in Visa Class A on November 5, 2024 and sell it today you would earn a total of 11,551 from holding Visa Class A or generate 51.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.76% |
| Values | Daily Returns |
Visa Class A vs. Ningbo Construction Co
Performance |
| Timeline |
| Visa Class A |
| Ningbo Construction |
Visa and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ningbo Construction
The main advantage of trading using opposite Visa and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Upstart Holdings | Visa vs. Capital One Financial |
| Ningbo Construction vs. Glodon Software Co | Ningbo Construction vs. Bingo Software Co | Ningbo Construction vs. Linkage Software Co | Ningbo Construction vs. Beijing Baolande 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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