Correlation Between Visa and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Visa and WAGNERS HOLDING 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 WAGNERS HOLDING 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 WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Visa and WAGNERS HOLDING 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 WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and WAGNERS HOLDING.
Diversification Opportunities for Visa and WAGNERS HOLDING
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and WAGNERS is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD 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 WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Visa i.e., Visa and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Visa and WAGNERS HOLDING
Taking into account the 90-day investment horizon Visa is expected to generate 2.01 times less return on investment than WAGNERS HOLDING. But when comparing it to its historical volatility, Visa Class A is 3.84 times less risky than WAGNERS HOLDING. It trades about 0.09 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 48.00 in WAGNERS HOLDING LTD on September 26, 2024 and sell it today you would earn a total of 34.00 from holding WAGNERS HOLDING LTD or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.22% |
| Values | Daily Returns |
Visa Class A vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Visa Class A |
| WAGNERS HOLDING LTD |
Visa and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and WAGNERS HOLDING
The main advantage of trading using opposite Visa and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
| WAGNERS HOLDING vs. ALEFARM BREWING DK 05 | WAGNERS HOLDING vs. Chongqing Machinery Electric | WAGNERS HOLDING vs. Corporate Travel Management | WAGNERS HOLDING vs. CeoTronics AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |