Correlation Between Visa and Able View
Can any of the company-specific risk be diversified away by investing in both Visa and Able View 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 Able View 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 Able View Global, you can compare the effects of market volatilities on Visa and Able View 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 Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Able View.
Diversification Opportunities for Visa and Able View
Excellent diversification
The 3 months correlation between Visa and Able is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global 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 Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of Visa i.e., Visa and Able View go up and down completely randomly.
Pair Corralation between Visa and Able View
Taking into account the 90-day investment horizon Visa is expected to generate 21.39 times less return on investment than Able View. But when comparing it to its historical volatility, Visa Class A is 31.52 times less risky than Able View. It trades about 0.16 of its potential returns per unit of risk. Able View Global is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2.55 in Able View Global on September 2, 2024 and sell it today you would lose (0.67) from holding Able View Global or give up 26.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 37.5% |
| Values | Daily Returns |
Visa Class A vs. Able View Global
Performance |
| Timeline |
| Visa Class A |
| Able View Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Visa and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Able View
The main advantage of trading using opposite Visa and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Able View vs. BJs Restaurants | Able View vs. Biglari Holdings | Able View vs. Micron Technology | Able View vs. Advanced Micro Devices |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |