Correlation Between Visa and CICT Mobile
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By analyzing existing cross correlation between Visa Class A and CICT Mobile Communication, you can compare the effects of market volatilities on Visa and CICT Mobile 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 CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CICT Mobile.
Diversification Opportunities for Visa and CICT Mobile
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and CICT is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication 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 CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of Visa i.e., Visa and CICT Mobile go up and down completely randomly.
Pair Corralation between Visa and CICT Mobile
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.4 times more return on investment than CICT Mobile. However, Visa Class A is 2.49 times less risky than CICT Mobile. It trades about 0.08 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.01 per unit of risk. If you would invest 23,011 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 8,459 from holding Visa Class A or generate 36.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.45% |
| Values | Daily Returns |
Visa Class A vs. CICT Mobile Communication
Performance |
| Timeline |
| Visa Class A |
| CICT Mobile Communication |
Visa and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CICT Mobile
The main advantage of trading using opposite Visa and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CICT Mobile vs. Kweichow Moutai Co | CICT Mobile vs. NAURA Technology Group | CICT Mobile vs. APT Medical | CICT Mobile vs. Contemporary Amperex 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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