Correlation Between Visa and Anugerah Kagum
Can any of the company-specific risk be diversified away by investing in both Visa and Anugerah Kagum 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 Anugerah Kagum 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 Anugerah Kagum Karya, you can compare the effects of market volatilities on Visa and Anugerah Kagum 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 Anugerah Kagum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Anugerah Kagum.
Diversification Opportunities for Visa and Anugerah Kagum
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Anugerah is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Anugerah Kagum Karya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anugerah Kagum Karya 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 Anugerah Kagum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anugerah Kagum Karya has no effect on the direction of Visa i.e., Visa and Anugerah Kagum go up and down completely randomly.
Pair Corralation between Visa and Anugerah Kagum
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.26 times more return on investment than Anugerah Kagum. However, Visa Class A is 3.92 times less risky than Anugerah Kagum. It trades about 0.11 of its potential returns per unit of risk. Anugerah Kagum Karya is currently generating about -0.04 per unit of risk. If you would invest 21,158 in Visa Class A on November 1, 2024 and sell it today you would earn a total of 13,147 from holding Visa Class A or generate 62.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.09% |
| Values | Daily Returns |
Visa Class A vs. Anugerah Kagum Karya
Performance |
| Timeline |
| Visa Class A |
| Anugerah Kagum Karya |
Visa and Anugerah Kagum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Anugerah Kagum
The main advantage of trading using opposite Visa and Anugerah Kagum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Anugerah Kagum 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 Anugerah Kagum will offset losses from the drop in Anugerah Kagum's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Anugerah Kagum vs. Asiaplast Industries Tbk | Anugerah Kagum vs. Argha Karya Prima | Anugerah Kagum vs. Alumindo Light Metal | Anugerah Kagum vs. Asahimas Flat Glass |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |