Correlation Between Visa and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both Visa and MiraeAsset TIGER 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 MiraeAsset TIGER 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 MiraeAsset TIGER Inverse, you can compare the effects of market volatilities on Visa and MiraeAsset TIGER 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 MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and MiraeAsset TIGER.
Diversification Opportunities for Visa and MiraeAsset TIGER
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and MiraeAsset is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and MiraeAsset TIGER Inverse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Inverse 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 MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER Inverse has no effect on the direction of Visa i.e., Visa and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between Visa and MiraeAsset TIGER
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.9 times more return on investment than MiraeAsset TIGER. However, Visa Class A is 1.12 times less risky than MiraeAsset TIGER. It trades about 0.08 of its potential returns per unit of risk. MiraeAsset TIGER Inverse is currently generating about 0.0 per unit of risk. If you would invest 21,038 in Visa Class A on August 24, 2024 and sell it today you would earn a total of 9,914 from holding Visa Class A or generate 47.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.58% |
| Values | Daily Returns |
Visa Class A vs. MiraeAsset TIGER Inverse
Performance |
| Timeline |
| Visa Class A |
| MiraeAsset TIGER Inverse |
Visa and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and MiraeAsset TIGER
The main advantage of trading using opposite Visa and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| MiraeAsset TIGER vs. MiraeAsset TIGER Quality | MiraeAsset TIGER vs. MiraeAsset TIGER NIKKEI225 | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Morningstar | MiraeAsset TIGER vs. MiraeAsset TIGER 200 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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