Correlation Between Visa and Ningbo Tip
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By analyzing existing cross correlation between Visa Class A and Ningbo Tip Rubber, you can compare the effects of market volatilities on Visa and Ningbo Tip 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 Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ningbo Tip.
Diversification Opportunities for Visa and Ningbo Tip
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Visa and Ningbo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Visa i.e., Visa and Ningbo Tip go up and down completely randomly.
Pair Corralation between Visa and Ningbo Tip
Taking into account the 90-day investment horizon Visa is expected to generate 1.31 times less return on investment than Ningbo Tip. But when comparing it to its historical volatility, Visa Class A is 2.3 times less risky than Ningbo Tip. It trades about 0.5 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Ningbo Tip Rubber on November 6, 2024 and sell it today you would earn a total of 126.00 from holding Ningbo Tip Rubber or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Visa Class A vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Visa Class A |
| Ningbo Tip Rubber |
Visa and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ningbo Tip
The main advantage of trading using opposite Visa and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ningbo Tip 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 Tip will offset losses from the drop in Ningbo Tip's long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
| Ningbo Tip vs. Time Publishing and | Ningbo Tip vs. Hangzhou Arcvideo Technology | Ningbo Tip vs. Shanghai Action Education | Ningbo Tip vs. Iat Automobile 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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