Correlation Between PT Bank and Visa
Specify exactly 2 symbols:
By analyzing existing cross correlation between PT Bank Rakyat and Visa Inc, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Visa.
Diversification Opportunities for PT Bank and Visa
Pay attention - limited upside
The 3 months correlation between BYRA and Visa is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc and PT Bank 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 PT Bank Rakyat 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 Inc has no effect on the direction of PT Bank i.e., PT Bank and Visa go up and down completely randomly.
Pair Corralation between PT Bank and Visa
Assuming the 90 days trading horizon PT Bank is expected to generate 1.0 times less return on investment than Visa. In addition to that, PT Bank is 5.58 times more volatile than Visa Inc. It trades about 0.02 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.1 per unit of volatility. If you would invest 20,485 in Visa Inc on August 31, 2024 and sell it today you would earn a total of 9,375 from holding Visa Inc or generate 45.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
PT Bank Rakyat vs. Visa Inc
Performance |
| Timeline |
| PT Bank Rakyat |
| Visa Inc |
PT Bank and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Visa
The main advantage of trading using opposite PT Bank and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.The idea behind PT Bank Rakyat and Visa Inc 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.| Visa vs. EAT WELL INVESTMENT | Visa vs. ECHO INVESTMENT ZY | Visa vs. New Residential Investment | Visa vs. AOYAMA TRADING |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |