Correlation Between Grenke AG and Visa
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By analyzing existing cross correlation between Grenke AG and Visa Inc, you can compare the effects of market volatilities on Grenke AG 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 Grenke AG with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grenke AG and Visa.
Diversification Opportunities for Grenke AG and Visa
Pay attention - limited upside
The 3 months correlation between Grenke and Visa is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Grenke AG and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc and Grenke AG 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 Grenke AG 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 Grenke AG i.e., Grenke AG and Visa go up and down completely randomly.
Pair Corralation between Grenke AG and Visa
Assuming the 90 days trading horizon Grenke AG is expected to under-perform the Visa. In addition to that, Grenke AG is 2.31 times more volatile than Visa Inc. It trades about 0.0 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.09 per unit of volatility. If you would invest 19,202 in Visa Inc on September 5, 2024 and sell it today you would earn a total of 10,713 from holding Visa Inc or generate 55.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grenke AG vs. Visa Inc
Performance |
| Timeline |
| Grenke AG |
| Visa Inc |
Grenke AG and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grenke AG and Visa
The main advantage of trading using opposite Grenke AG and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grenke AG 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.| Grenke AG vs. Visa Inc | Grenke AG vs. Visa Inc | Grenke AG vs. American Express | Grenke AG vs. ORIX Corporation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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