Correlation Between Visa and Argo Pantes
Can any of the company-specific risk be diversified away by investing in both Visa and Argo Pantes 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 Argo Pantes 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 Argo Pantes Tbk, you can compare the effects of market volatilities on Visa and Argo Pantes 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 Argo Pantes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Argo Pantes.
Diversification Opportunities for Visa and Argo Pantes
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Argo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Argo Pantes Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Pantes Tbk 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 Argo Pantes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Pantes Tbk has no effect on the direction of Visa i.e., Visa and Argo Pantes go up and down completely randomly.
Pair Corralation between Visa and Argo Pantes
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.29 times more return on investment than Argo Pantes. However, Visa Class A is 3.51 times less risky than Argo Pantes. It trades about 0.08 of its potential returns per unit of risk. Argo Pantes Tbk is currently generating about 0.02 per unit of risk. If you would invest 22,626 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 8,882 from holding Visa Class A or generate 39.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.95% |
| Values | Daily Returns |
Visa Class A vs. Argo Pantes Tbk
Performance |
| Timeline |
| Visa Class A |
| Argo Pantes Tbk |
Visa and Argo Pantes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Argo Pantes
The main advantage of trading using opposite Visa and Argo Pantes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Argo Pantes 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 Argo Pantes will offset losses from the drop in Argo Pantes' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Argo Pantes vs. Japfa Comfeed Indonesia | Argo Pantes vs. Charoen Pokphand Indonesia | Argo Pantes vs. Erajaya Swasembada Tbk | Argo Pantes vs. Indofood Cbp Sukses |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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