Correlation Between Visa and Aurskog Sparebank
Can any of the company-specific risk be diversified away by investing in both Visa and Aurskog Sparebank 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 Aurskog Sparebank 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 Aurskog Sparebank, you can compare the effects of market volatilities on Visa and Aurskog Sparebank 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 Aurskog Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Aurskog Sparebank.
Diversification Opportunities for Visa and Aurskog Sparebank
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Visa and Aurskog is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Aurskog Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurskog Sparebank 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 Aurskog Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurskog Sparebank has no effect on the direction of Visa i.e., Visa and Aurskog Sparebank go up and down completely randomly.
Pair Corralation between Visa and Aurskog Sparebank
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.98 times more return on investment than Aurskog Sparebank. However, Visa Class A is 1.02 times less risky than Aurskog Sparebank. It trades about 0.23 of its potential returns per unit of risk. Aurskog Sparebank is currently generating about 0.06 per unit of risk. If you would invest 30,728 in Visa Class A on November 8, 2024 and sell it today you would earn a total of 4,020 from holding Visa Class A or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Aurskog Sparebank
Performance |
| Timeline |
| Visa Class A |
| Aurskog Sparebank |
Visa and Aurskog Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Aurskog Sparebank
The main advantage of trading using opposite Visa and Aurskog Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Aurskog Sparebank 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 Aurskog Sparebank will offset losses from the drop in Aurskog Sparebank's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Aurskog Sparebank vs. Melhus Sparebank | Aurskog Sparebank vs. Holand og Setskog | Aurskog Sparebank vs. Helgeland Sparebank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |