Correlation Between Visa and Kakao Games
Can any of the company-specific risk be diversified away by investing in both Visa and Kakao Games 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 Kakao Games 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 Kakao Games Corp, you can compare the effects of market volatilities on Visa and Kakao Games 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 Kakao Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kakao Games.
Diversification Opportunities for Visa and Kakao Games
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Kakao is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kakao Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakao Games Corp 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 Kakao Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakao Games Corp has no effect on the direction of Visa i.e., Visa and Kakao Games go up and down completely randomly.
Pair Corralation between Visa and Kakao Games
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.46 times more return on investment than Kakao Games. However, Visa Class A is 2.16 times less risky than Kakao Games. It trades about 0.08 of its potential returns per unit of risk. Kakao Games Corp is currently generating about -0.09 per unit of risk. If you would invest 22,626 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 8,882 from holding Visa Class A or generate 39.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Visa Class A vs. Kakao Games Corp
Performance |
| Timeline |
| Visa Class A |
| Kakao Games Corp |
Visa and Kakao Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kakao Games
The main advantage of trading using opposite Visa and Kakao Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kakao Games 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 Kakao Games will offset losses from the drop in Kakao Games' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Kakao Games vs. Kukdong Oil Chemicals | Kakao Games vs. PJ Metal Co | Kakao Games vs. Posco Chemical Co | Kakao Games vs. Youngchang Chemical 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |