Correlation Between Visa and Ainos
Can any of the company-specific risk be diversified away by investing in both Visa and Ainos 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 Ainos 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 Ainos Inc, you can compare the effects of market volatilities on Visa and Ainos 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 Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Ainos.
Diversification Opportunities for Visa and Ainos
Excellent diversification
The 3 months correlation between Visa and Ainos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc 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 Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Visa i.e., Visa and Ainos go up and down completely randomly.
Pair Corralation between Visa and Ainos
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.11 times more return on investment than Ainos. However, Visa Class A is 9.03 times less risky than Ainos. It trades about 0.08 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.02 per unit of risk. If you would invest 23,668 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 7,651 from holding Visa Class A or generate 32.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Ainos Inc
Performance |
| Timeline |
| Visa Class A |
| Ainos Inc |
Visa and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Ainos
The main advantage of trading using opposite Visa and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |