Correlation Between Visa and An Phat
Can any of the company-specific risk be diversified away by investing in both Visa and An Phat 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 An Phat 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 An Phat Plastic, you can compare the effects of market volatilities on Visa and An Phat 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 An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and An Phat.
Diversification Opportunities for Visa and An Phat
Pay attention - limited upside
The 3 months correlation between Visa and AAA is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic 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 An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Visa i.e., Visa and An Phat go up and down completely randomly.
Pair Corralation between Visa and An Phat
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.73 times more return on investment than An Phat. However, Visa Class A is 1.38 times less risky than An Phat. It trades about 0.36 of its potential returns per unit of risk. An Phat Plastic is currently generating about -0.1 per unit of risk. If you would invest 28,365 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 2,954 from holding Visa Class A or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. An Phat Plastic
Performance |
| Timeline |
| Visa Class A |
| An Phat Plastic |
Visa and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and An Phat
The main advantage of trading using opposite Visa and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
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.
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