Correlation Between Visa and XIAOMI
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and XIAOMI 3375 29 APR 30, you can compare the effects of market volatilities on Visa and XIAOMI 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 XIAOMI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and XIAOMI.
Diversification Opportunities for Visa and XIAOMI
Poor diversification
The 3 months correlation between Visa and XIAOMI is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and XIAOMI 3375 29 APR 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XIAOMI 3375 29 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 XIAOMI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XIAOMI 3375 29 has no effect on the direction of Visa i.e., Visa and XIAOMI go up and down completely randomly.
Pair Corralation between Visa and XIAOMI
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.31 times more return on investment than XIAOMI. However, Visa Class A is 3.24 times less risky than XIAOMI. It trades about 0.17 of its potential returns per unit of risk. XIAOMI 3375 29 APR 30 is currently generating about -0.22 per unit of risk. If you would invest 31,478 in Visa Class A on December 28, 2024 and sell it today you would earn a total of 3,508 from holding Visa Class A or generate 11.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 18.33% |
Values | Daily Returns |
Visa Class A vs. XIAOMI 3375 29 APR 30
Performance |
Timeline |
Visa Class A |
XIAOMI 3375 29 |
Visa and XIAOMI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and XIAOMI
The main advantage of trading using opposite Visa and XIAOMI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, XIAOMI 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 XIAOMI will offset losses from the drop in XIAOMI's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
XIAOMI vs. Waste Management | XIAOMI vs. MicroSectors Gold Miners | XIAOMI vs. Home Depot | XIAOMI vs. HP Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |