Correlation Between Visa and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Visa and Mainstay Fiera 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 Mainstay Fiera 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 Mainstay Fiera Smid, you can compare the effects of market volatilities on Visa and Mainstay Fiera 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 Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mainstay Fiera.
Diversification Opportunities for Visa and Mainstay Fiera
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid 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 Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Visa i.e., Visa and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Visa and Mainstay Fiera
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.11 times more return on investment than Mainstay Fiera. However, Visa is 1.11 times more volatile than Mainstay Fiera Smid. It trades about 0.1 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.09 per unit of risk. If you would invest 27,024 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 4,295 from holding Visa Class A or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Visa Class A |
| Mainstay Fiera Smid |
Visa and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Mainstay Fiera
The main advantage of trading using opposite Visa and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mainstay Fiera 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 Mainstay Fiera will offset losses from the drop in Mainstay Fiera's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera vs. Mainstay Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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