Correlation Between Visa and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Visa and Nan Ya at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Nan Ya Printed, you can compare the effects of market volatilities on Visa and Nan Ya 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 Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Nan Ya.
Diversification Opportunities for Visa and Nan Ya
Very weak diversification
The 3 months correlation between Visa and Nan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Nan Ya Printed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nan Ya Printed 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 Nan Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nan Ya Printed has no effect on the direction of Visa i.e., Visa and Nan Ya go up and down completely randomly.
Pair Corralation between Visa and Nan Ya
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.44 times more return on investment than Nan Ya. However, Visa Class A is 2.29 times less risky than Nan Ya. It trades about 0.1 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.04 per unit of risk. If you would invest 21,661 in Visa Class A on November 19, 2024 and sell it today you would earn a total of 13,720 from holding Visa Class A or generate 63.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.18% |
| Values | Daily Returns |
Visa Class A vs. Nan Ya Printed
Performance |
| Timeline |
| Visa Class A |
| Nan Ya Printed |
Visa and Nan Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Nan Ya
The main advantage of trading using opposite Visa and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Nan Ya 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 Nan Ya will offset losses from the drop in Nan Ya's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Nan Ya vs. Unimicron Technology Corp | Nan Ya vs. Kinsus Interconnect Technology | Nan Ya vs. Novatek Microelectronics Corp | Nan Ya vs. Delta Electronics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |