Correlation Between Visa and Jinhui Mining
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By analyzing existing cross correlation between Visa Class A and Jinhui Mining Co, you can compare the effects of market volatilities on Visa and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jinhui Mining.
Diversification Opportunities for Visa and Jinhui Mining
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Jinhui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Visa i.e., Visa and Jinhui Mining go up and down completely randomly.
Pair Corralation between Visa and Jinhui Mining
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.63 times more return on investment than Jinhui Mining. However, Visa Class A is 1.59 times less risky than Jinhui Mining. It trades about 0.34 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.11 per unit of risk. If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Jinhui Mining Co
Performance |
| Timeline |
| Visa Class A |
| Jinhui Mining |
Visa and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jinhui Mining
The main advantage of trading using opposite Visa and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Jinhui Mining vs. Panda Financial Holding | Jinhui Mining vs. Gome Telecom Equipment | Jinhui Mining vs. Guangdong Qunxing Toys | Jinhui Mining vs. China Everbright Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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