Correlation Between Visa and Bonava AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Bonava AB, you can compare the effects of market volatilities on Visa and Bonava AB 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Bonava AB.
Diversification Opportunities for Visa and Bonava AB
Poor diversification
The 3 months correlation between Visa and Bonava is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava 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 Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Visa i.e., Visa and Bonava AB go up and down completely randomly.
Pair Corralation between Visa and Bonava AB
Taking into account the 90-day investment horizon Visa is expected to generate 1.57 times less return on investment than Bonava AB. But when comparing it to its historical volatility, Visa Class A is 3.8 times less risky than Bonava AB. It trades about 0.28 of its potential returns per unit of risk. Bonava AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Bonava AB on November 28, 2024 and sell it today you would earn a total of 75.00 from holding Bonava AB or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Visa Class A vs. Bonava AB
Performance |
| Timeline |
| Visa Class A |
| Bonava AB |
Visa and Bonava AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Bonava AB
The main advantage of trading using opposite Visa and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Bonava AB vs. Bonava AB | Bonava AB vs. Atrium Ljungberg AB | Bonava AB vs. Attendo AB | Bonava AB vs. NCC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |