Correlation Between Visa and Camil Alimentos
Can any of the company-specific risk be diversified away by investing in both Visa and Camil Alimentos 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 Camil Alimentos 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 Camil Alimentos SA, you can compare the effects of market volatilities on Visa and Camil Alimentos 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 Camil Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Camil Alimentos.
Diversification Opportunities for Visa and Camil Alimentos
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Camil is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Camil Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camil Alimentos SA 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 Camil Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camil Alimentos SA has no effect on the direction of Visa i.e., Visa and Camil Alimentos go up and down completely randomly.
Pair Corralation between Visa and Camil Alimentos
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.6 times more return on investment than Camil Alimentos. However, Visa Class A is 1.66 times less risky than Camil Alimentos. It trades about 0.35 of its potential returns per unit of risk. Camil Alimentos SA is currently generating about -0.28 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. Camil Alimentos SA
Performance |
| Timeline |
| Visa Class A |
| Camil Alimentos SA |
Visa and Camil Alimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Camil Alimentos
The main advantage of trading using opposite Visa and Camil Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Camil Alimentos 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 Camil Alimentos will offset losses from the drop in Camil Alimentos' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Camil Alimentos vs. Companhia Siderrgica Nacional | Camil Alimentos vs. Cyrela Brazil Realty | Camil Alimentos vs. Fras le SA | Camil Alimentos vs. Energisa SA |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |