Correlation Between Visa and Aju IB
Can any of the company-specific risk be diversified away by investing in both Visa and Aju IB 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 Aju IB 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 Aju IB Investment, you can compare the effects of market volatilities on Visa and Aju IB 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 Aju IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Aju IB.
Diversification Opportunities for Visa and Aju IB
Poor diversification
The 3 months correlation between Visa and Aju is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Aju IB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aju IB Investment 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 Aju IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aju IB Investment has no effect on the direction of Visa i.e., Visa and Aju IB go up and down completely randomly.
Pair Corralation between Visa and Aju IB
Taking into account the 90-day investment horizon Visa is expected to generate 1.1 times less return on investment than Aju IB. But when comparing it to its historical volatility, Visa Class A is 3.48 times less risky than Aju IB. It trades about 0.1 of its potential returns per unit of risk. Aju IB Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 234,242 in Aju IB Investment on September 4, 2024 and sell it today you would earn a total of 48,758 from holding Aju IB Investment or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.32% |
| Values | Daily Returns |
Visa Class A vs. Aju IB Investment
Performance |
| Timeline |
| Visa Class A |
| Aju IB Investment |
Visa and Aju IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Aju IB
The main advantage of trading using opposite Visa and Aju IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Aju IB 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 Aju IB will offset losses from the drop in Aju IB's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Aju IB vs. Atinum Investment Co | Aju IB vs. SBI Investment KOREA | Aju IB vs. Busan Industrial Co | Aju IB vs. UNISEM Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance |