Correlation Between Visa and Augmedix
Can any of the company-specific risk be diversified away by investing in both Visa and Augmedix 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 Augmedix 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 Augmedix, you can compare the effects of market volatilities on Visa and Augmedix 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 Augmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Augmedix.
Diversification Opportunities for Visa and Augmedix
Very weak diversification
The 3 months correlation between Visa and Augmedix is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix 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 Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of Visa i.e., Visa and Augmedix go up and down completely randomly.
Pair Corralation between Visa and Augmedix
Taking into account the 90-day investment horizon Visa is expected to generate 5.63 times less return on investment than Augmedix. But when comparing it to its historical volatility, Visa Class A is 9.12 times less risky than Augmedix. It trades about 0.08 of its potential returns per unit of risk. Augmedix is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Augmedix on August 26, 2024 and sell it today you would earn a total of 118.00 from holding Augmedix or generate 100.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.56% |
| Values | Daily Returns |
Visa Class A vs. Augmedix
Performance |
| Timeline |
| Visa Class A |
| Augmedix |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Visa and Augmedix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Augmedix
The main advantage of trading using opposite Visa and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Augmedix vs. In8bio Inc | Augmedix vs. Dermata Therapeutics | Augmedix vs. Elevation Oncology | Augmedix vs. Aclarion |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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