Correlation Between Visa and Catella AB
Can any of the company-specific risk be diversified away by investing in both Visa and Catella AB 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 Catella AB 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 Catella AB A, you can compare the effects of market volatilities on Visa and Catella 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 Catella AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Catella AB.
Diversification Opportunities for Visa and Catella AB
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Catella is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Catella AB A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catella AB A 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 Catella AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catella AB A has no effect on the direction of Visa i.e., Visa and Catella AB go up and down completely randomly.
Pair Corralation between Visa and Catella AB
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.3 times more return on investment than Catella AB. However, Visa Class A is 3.34 times less risky than Catella AB. It trades about 0.07 of its potential returns per unit of risk. Catella AB A is currently generating about 0.01 per unit of risk. If you would invest 22,905 in Visa Class A on January 8, 2025 and sell it today you would earn a total of 9,084 from holding Visa Class A or generate 39.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Visa Class A vs. Catella AB A
Performance |
| Timeline |
| Visa Class A |
| Catella AB A |
Visa and Catella AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Catella AB
The main advantage of trading using opposite Visa and Catella AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Catella 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 Catella AB will offset losses from the drop in Catella AB's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Catella AB vs. Catella AB | Catella AB vs. Mekonomen AB | Catella AB vs. Embellence Group AB | Catella AB vs. AAC Clyde Space |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |