Correlation Between Visa and Shenzhen New
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By analyzing existing cross correlation between Visa Class A and Shenzhen New Nanshan, you can compare the effects of market volatilities on Visa and Shenzhen New 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 Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Shenzhen New.
Diversification Opportunities for Visa and Shenzhen New
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Shenzhen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Visa i.e., Visa and Shenzhen New go up and down completely randomly.
Pair Corralation between Visa and Shenzhen New
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.54 times more return on investment than Shenzhen New. However, Visa Class A is 1.84 times less risky than Shenzhen New. It trades about 0.1 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.02 per unit of risk. If you would invest 31,669 in Visa Class A on December 22, 2024 and sell it today you would earn a total of 1,897 from holding Visa Class A or generate 5.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.08% |
Values | Daily Returns |
Visa Class A vs. Shenzhen New Nanshan
Performance |
Timeline |
Visa Class A |
Shenzhen New Nanshan |
Visa and Shenzhen New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Shenzhen New
The main advantage of trading using opposite Visa and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Shenzhen New 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 Shenzhen New will offset losses from the drop in Shenzhen New's long position.Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
Shenzhen New vs. Muyuan Foodstuff Co | Shenzhen New vs. Sportsoul Co Ltd | Shenzhen New vs. Sichuan Fulin Transportation | Shenzhen New vs. Hubeiyichang Transportation Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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