Correlation Between Visa and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Visa and Angkor Resources 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 Angkor Resources 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 Angkor Resources Corp, you can compare the effects of market volatilities on Visa and Angkor Resources 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 Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Angkor Resources.
Diversification Opportunities for Visa and Angkor Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Angkor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp 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 Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Visa i.e., Visa and Angkor Resources go up and down completely randomly.
Pair Corralation between Visa and Angkor Resources
Taking into account the 90-day investment horizon Visa is expected to generate 2.54 times less return on investment than Angkor Resources. But when comparing it to its historical volatility, Visa Class A is 6.66 times less risky than Angkor Resources. It trades about 0.09 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Angkor Resources Corp on August 27, 2024 and sell it today you would earn a total of 0.50 from holding Angkor Resources Corp or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Visa Class A vs. Angkor Resources Corp
Performance |
| Timeline |
| Visa Class A |
| Angkor Resources Corp |
Visa and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Angkor Resources
The main advantage of trading using opposite Visa and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Angkor Resources vs. First Majestic Silver | Angkor Resources vs. Ivanhoe Energy | Angkor Resources vs. Orezone Gold 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |