Correlation Between Visa and Hoa Binh
Can any of the company-specific risk be diversified away by investing in both Visa and Hoa Binh 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 Hoa Binh 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 Hoa Binh Mineral, you can compare the effects of market volatilities on Visa and Hoa Binh 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 Hoa Binh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Hoa Binh.
Diversification Opportunities for Visa and Hoa Binh
Pay attention - limited upside
The 3 months correlation between Visa and Hoa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Hoa Binh Mineral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoa Binh Mineral 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 Hoa Binh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoa Binh Mineral has no effect on the direction of Visa i.e., Visa and Hoa Binh go up and down completely randomly.
Pair Corralation between Visa and Hoa Binh
If you would invest 31,032 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 206.00 from holding Visa Class A or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Visa Class A vs. Hoa Binh Mineral
Performance |
| Timeline |
| Visa Class A |
| Hoa Binh Mineral |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and Hoa Binh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Hoa Binh
The main advantage of trading using opposite Visa and Hoa Binh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Hoa Binh 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 Hoa Binh will offset losses from the drop in Hoa Binh's long position.The idea behind Visa Class A and Hoa Binh Mineral pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hoa Binh vs. TDG Global Investment | Hoa Binh vs. BaoMinh Insurance Corp | Hoa Binh vs. Dinhvu Port Investment | Hoa Binh vs. PV2 Investment JSC |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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