Correlation Between Visa and Yubo International

Can any of the company-specific risk be diversified away by investing in both Visa and Yubo International 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 Yubo International 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 Yubo International Biotech, you can compare the effects of market volatilities on Visa and Yubo International 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 Yubo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Yubo International.

Diversification Opportunities for Visa and Yubo International

0.73

Correlation Coefficient

Visa  Yubo International

Poor diversification

The 3 months correlation between Visa and Yubo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Yubo International Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yubo International 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 Yubo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yubo International has no effect on the direction of Visa i.e., Visa and Yubo International go up and down completely randomly.

Pair Corralation between Visa and Yubo International

Taking into account the 90-day investment horizon Visa is expected to generate 9.37 times less return on investment than Yubo International. But when comparing it to its historical volatility, Visa Class A is 6.47 times less risky than Yubo International. It trades about 0.07 of its potential returns per unit of risk. Yubo International Biotech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Yubo International Biotech on December 17, 2024 and sell it today you would earn a total of  1.79  from holding Yubo International Biotech or generate 35.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.83%
Values	Daily Returns

Visa Class A  vs.  Yubo International Biotech

Visa Class A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Visa is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Yubo International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yubo International Biotech are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Yubo International revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Visa and Yubo International

The main advantage of trading using opposite Visa and Yubo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Yubo International 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 Yubo International will offset losses from the drop in Yubo International's long position.

The idea behind Visa Class A and Yubo International Biotech 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.