Correlation Between Binah Capital and Visa
Can any of the company-specific risk be diversified away by investing in both Binah Capital and Visa 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 Binah Capital and Visa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binah Capital Group, and Visa Class A, you can compare the effects of market volatilities on Binah Capital and Visa 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 Binah Capital with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binah Capital and Visa.
Diversification Opportunities for Binah Capital and Visa
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Binah and Visa is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Binah Capital Group, and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A and Binah Capital 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 Binah Capital Group, are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of Binah Capital i.e., Binah Capital and Visa go up and down completely randomly.
Pair Corralation between Binah Capital and Visa
Considering the 90-day investment horizon Binah Capital Group, is expected to under-perform the Visa. In addition to that, Binah Capital is 11.38 times more volatile than Visa Class A. It trades about -0.03 of its total potential returns per unit of risk. Visa Class A is currently generating about 0.08 per unit of volatility. If you would invest 31,032 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 373.50 from holding Visa Class A or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binah Capital Group, vs. Visa Class A
Performance |
| Timeline |
| Binah Capital Group, |
| Visa Class A |
Binah Capital and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binah Capital and Visa
The main advantage of trading using opposite Binah Capital and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binah Capital position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| Binah Capital vs. Primo Brands | Binah Capital vs. Alvarium Tiedemann Holdings | Binah Capital vs. Diamond Estates Wines | Binah Capital vs. Western Acquisition Ventures |
| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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