Correlation Between Visa and Cosmax Nbt
Can any of the company-specific risk be diversified away by investing in both Visa and Cosmax Nbt 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 Cosmax Nbt 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 Cosmax Nbt, you can compare the effects of market volatilities on Visa and Cosmax Nbt 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 Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Cosmax Nbt.
Diversification Opportunities for Visa and Cosmax Nbt
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Visa and Cosmax is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt 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 Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of Visa i.e., Visa and Cosmax Nbt go up and down completely randomly.
Pair Corralation between Visa and Cosmax Nbt
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.37 times more return on investment than Cosmax Nbt. However, Visa Class A is 2.72 times less risky than Cosmax Nbt. It trades about 0.09 of its potential returns per unit of risk. Cosmax Nbt is currently generating about -0.01 per unit of risk. If you would invest 20,548 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 10,922 from holding Visa Class A or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Visa Class A vs. Cosmax Nbt
Performance |
| Timeline |
| Visa Class A |
| Cosmax Nbt |
Visa and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Cosmax Nbt
The main advantage of trading using opposite Visa and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Cosmax Nbt 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 Cosmax Nbt will offset losses from the drop in Cosmax Nbt's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Cosmax Nbt vs. Samsung Electronics Co | Cosmax Nbt vs. Samsung Electronics Co | Cosmax Nbt vs. Hyundai Motor Co | Cosmax Nbt vs. Hyundai Motor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |