Correlation Between Visa and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both Visa and Amadeus IT 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 Amadeus IT 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 Amadeus IT Holding, you can compare the effects of market volatilities on Visa and Amadeus IT 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 Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Amadeus IT.
Diversification Opportunities for Visa and Amadeus IT
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Amadeus is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Amadeus IT Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Holding 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 Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Holding has no effect on the direction of Visa i.e., Visa and Amadeus IT go up and down completely randomly.
Pair Corralation between Visa and Amadeus IT
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.03 times more return on investment than Amadeus IT. However, Visa is 1.03 times more volatile than Amadeus IT Holding. It trades about 0.33 of its potential returns per unit of risk. Amadeus IT Holding is currently generating about -0.17 per unit of risk. If you would invest 28,960 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 2,510 from holding Visa Class A or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Amadeus IT Holding
Performance |
| Timeline |
| Visa Class A |
| Amadeus IT Holding |
Visa and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Amadeus IT
The main advantage of trading using opposite Visa and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Amadeus IT vs. Arma Services | Amadeus IT vs. Yatra Online | Amadeus IT vs. MakeMyTrip Limited | Amadeus IT vs. Tuniu Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |