Correlation Between Visa and Amundi German
Can any of the company-specific risk be diversified away by investing in both Visa and Amundi German 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 Amundi German 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 Amundi German Bund, you can compare the effects of market volatilities on Visa and Amundi German 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 Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Amundi German.
Diversification Opportunities for Visa and Amundi German
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Amundi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund 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 Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of Visa i.e., Visa and Amundi German go up and down completely randomly.
Pair Corralation between Visa and Amundi German
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.39 times more return on investment than Amundi German. However, Visa is 2.39 times more volatile than Amundi German Bund. It trades about 0.08 of its potential returns per unit of risk. Amundi German Bund is currently generating about 0.03 per unit of risk. If you would invest 25,473 in Visa Class A on August 26, 2024 and sell it today you would earn a total of 5,519 from holding Visa Class A or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.81% |
| Values | Daily Returns |
Visa Class A vs. Amundi German Bund
Performance |
| Timeline |
| Visa Class A |
| Amundi German Bund |
Visa and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Amundi German
The main advantage of trading using opposite Visa and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Amundi German 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 Amundi German will offset losses from the drop in Amundi German's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Amundi German vs. Amundi Index Solutions | Amundi German vs. Amundi Index Solutions | Amundi German vs. Amundi Index Solutions | Amundi German vs. Amundi SP 500 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |