Correlation Between Visa and Allan Gray
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Allan Gray , you can compare the effects of market volatilities on Visa and Allan Gray 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 Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Allan Gray.
Diversification Opportunities for Visa and Allan Gray
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Allan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Allan Gray in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray 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 Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray has no effect on the direction of Visa i.e., Visa and Allan Gray go up and down completely randomly.
Pair Corralation between Visa and Allan Gray
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.05 times more return on investment than Allan Gray. However, Visa is 1.05 times more volatile than Allan Gray . It trades about 0.09 of its potential returns per unit of risk. Allan Gray is currently generating about 0.09 per unit of risk. If you would invest 20,266 in Visa Class A on September 13, 2024 and sell it today you would earn a total of 11,157 from holding Visa Class A or generate 55.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.59% |
| Values | Daily Returns |
Visa Class A vs. Allan Gray
Performance |
| Timeline |
| Visa Class A |
| Allan Gray |
Visa and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Allan Gray
The main advantage of trading using opposite Visa and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Allan Gray vs. Allan Gray orbis Global | Allan Gray vs. Allan Gray Tax free | Allan Gray vs. 4d Bci Moderate | Allan Gray vs. Coronation Global Optimum |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |