Correlation Between Visa and Softlogic Life
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By analyzing existing cross correlation between Visa Class A and Softlogic Life Insurance, you can compare the effects of market volatilities on Visa and Softlogic Life 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 Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Softlogic Life.
Diversification Opportunities for Visa and Softlogic Life
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and Softlogic is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance 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 Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Visa i.e., Visa and Softlogic Life go up and down completely randomly.
Pair Corralation between Visa and Softlogic Life
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.73 times more return on investment than Softlogic Life. However, Visa Class A is 1.37 times less risky than Softlogic Life. It trades about 0.34 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.08 per unit of risk. If you would invest 29,018 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 2,490 from holding Visa Class A or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. Softlogic Life Insurance
Performance |
| Timeline |
| Visa Class A |
| Softlogic Life Insurance |
Visa and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Softlogic Life
The main advantage of trading using opposite Visa and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Softlogic Life vs. Prime Lands Residencies | Softlogic Life vs. Lanka Credit and | Softlogic Life vs. VIDULLANKA PLC | Softlogic Life vs. EX PACK RUGATED CARTONS |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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