Correlation Between Visa and Asian Paints
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By analyzing existing cross correlation between Visa Class A and Asian Paints Limited, you can compare the effects of market volatilities on Visa and Asian Paints 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 Asian Paints. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Asian Paints.
Diversification Opportunities for Visa and Asian Paints
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Asian is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Asian Paints Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Paints Limited 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 Asian Paints. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Paints Limited has no effect on the direction of Visa i.e., Visa and Asian Paints go up and down completely randomly.
Pair Corralation between Visa and Asian Paints
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.55 times more return on investment than Asian Paints. However, Visa Class A is 1.8 times less risky than Asian Paints. It trades about 0.33 of its potential returns per unit of risk. Asian Paints Limited is currently generating about -0.44 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Visa Class A vs. Asian Paints Limited
Performance |
| Timeline |
| Visa Class A |
| Asian Paints Limited |
Visa and Asian Paints Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Asian Paints
The main advantage of trading using opposite Visa and Asian Paints positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Asian Paints 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 Asian Paints will offset losses from the drop in Asian Paints' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Asian Paints vs. LLOYDS METALS AND | Asian Paints vs. Hindustan Media Ventures | Asian Paints vs. Ankit Metal Power | Asian Paints vs. Sambhaav Media Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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