Correlation Between Visa and Astoria Investments
Can any of the company-specific risk be diversified away by investing in both Visa and Astoria Investments 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 Astoria Investments 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 Astoria Investments, you can compare the effects of market volatilities on Visa and Astoria Investments 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 Astoria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Astoria Investments.
Diversification Opportunities for Visa and Astoria Investments
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Astoria is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Astoria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Investments 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 Astoria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Investments has no effect on the direction of Visa i.e., Visa and Astoria Investments go up and down completely randomly.
Pair Corralation between Visa and Astoria Investments
Taking into account the 90-day investment horizon Visa is expected to generate 1.09 times less return on investment than Astoria Investments. But when comparing it to its historical volatility, Visa Class A is 3.54 times less risky than Astoria Investments. It trades about 0.09 of its potential returns per unit of risk. Astoria Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 71,000 in Astoria Investments on August 27, 2024 and sell it today you would earn a total of 11,500 from holding Astoria Investments or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Visa Class A vs. Astoria Investments
Performance |
| Timeline |
| Visa Class A |
| Astoria Investments |
Visa and Astoria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Astoria Investments
The main advantage of trading using opposite Visa and Astoria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Astoria Investments 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 Astoria Investments will offset losses from the drop in Astoria Investments' long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Astoria Investments vs. Centaur Bci Balanced | Astoria Investments vs. Growthpoint Properties | Astoria Investments vs. Bowler Metcalf | Astoria Investments vs. Shoprite Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |