Correlation Between Visa and China Finance
Can any of the company-specific risk be diversified away by investing in both Visa and China Finance 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 China Finance 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 China Finance, you can compare the effects of market volatilities on Visa and China Finance 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 China Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and China Finance.
Diversification Opportunities for Visa and China Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and China Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance 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 China Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance has no effect on the direction of Visa i.e., Visa and China Finance go up and down completely randomly.
Pair Corralation between Visa and China Finance
If you would invest 0.00 in China Finance on October 13, 2024 and sell it today you would earn a total of 0.00 from holding China Finance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Visa Class A vs. China Finance
Performance |
| Timeline |
| Visa Class A |
| China Finance |
Visa and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and China Finance
The main advantage of trading using opposite Visa and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, China Finance 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 China Finance will offset losses from the drop in China Finance's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| China Finance vs. Warner Music Group | China Finance vs. Worthington Steel | China Finance vs. Diageo PLC ADR | China Finance vs. Ironveld Plc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |