Correlation Between Visa and Julius Baer
Can any of the company-specific risk be diversified away by investing in both Visa and Julius Baer 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 Julius Baer 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 Julius Baer Gruppe, you can compare the effects of market volatilities on Visa and Julius Baer 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 Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Julius Baer.
Diversification Opportunities for Visa and Julius Baer
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Julius is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe 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 Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Gruppe has no effect on the direction of Visa i.e., Visa and Julius Baer go up and down completely randomly.
Pair Corralation between Visa and Julius Baer
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.57 times more return on investment than Julius Baer. However, Visa Class A is 1.77 times less risky than Julius Baer. It trades about 0.08 of its potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.02 per unit of risk. If you would invest 21,523 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 9,947 from holding Visa Class A or generate 46.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Visa Class A vs. Julius Baer Gruppe
Performance |
| Timeline |
| Visa Class A |
| Julius Baer Gruppe |
Visa and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Julius Baer
The main advantage of trading using opposite Visa and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Julius Baer vs. Swiss Life Holding | Julius Baer vs. UBS Group AG | Julius Baer vs. Adecco Group AG | Julius Baer vs. Zurich Insurance Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |