Correlation Between Visa and Binero Group
Can any of the company-specific risk be diversified away by investing in both Visa and Binero Group 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 Binero Group 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 Binero Group AB, you can compare the effects of market volatilities on Visa and Binero Group 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 Binero Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Binero Group.
Diversification Opportunities for Visa and Binero Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Binero is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Binero Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binero Group AB 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 Binero Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binero Group AB has no effect on the direction of Visa i.e., Visa and Binero Group go up and down completely randomly.
Pair Corralation between Visa and Binero Group
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.17 times more return on investment than Binero Group. However, Visa Class A is 5.85 times less risky than Binero Group. It trades about 0.09 of its potential returns per unit of risk. Binero Group AB is currently generating about 0.01 per unit of risk. If you would invest 20,975 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 10,533 from holding Visa Class A or generate 50.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Visa Class A vs. Binero Group AB
Performance |
| Timeline |
| Visa Class A |
| Binero Group AB |
Visa and Binero Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Binero Group
The main advantage of trading using opposite Visa and Binero Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Binero Group 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 Binero Group will offset losses from the drop in Binero Group's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Binero Group vs. Generic Sweden publ | Binero Group vs. Divio Technologies AB | Binero Group vs. Diadrom Holding AB | Binero Group vs. FlexQube AB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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