Correlation Between Visa and CENTUM INVESTMENT
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By analyzing existing cross correlation between Visa Class A and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on Visa and CENTUM INVESTMENT 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 CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CENTUM INVESTMENT.
Diversification Opportunities for Visa and CENTUM INVESTMENT
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and CENTUM is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY 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 CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of Visa i.e., Visa and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between Visa and CENTUM INVESTMENT
Taking into account the 90-day investment horizon Visa is expected to generate 22.58 times less return on investment than CENTUM INVESTMENT. But when comparing it to its historical volatility, Visa Class A is 3.9 times less risky than CENTUM INVESTMENT. It trades about 0.05 of its potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 982.00 in CENTUM INVESTMENT PANY on October 23, 2024 and sell it today you would earn a total of 198.00 from holding CENTUM INVESTMENT PANY or generate 20.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Visa Class A vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| Visa Class A |
| CENTUM INVESTMENT PANY |
Visa and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CENTUM INVESTMENT
The main advantage of trading using opposite Visa and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CENTUM INVESTMENT vs. HOME AFRIKA LTD | CENTUM INVESTMENT vs. HOMEBOYZ ENTERTAINMENT PLC | CENTUM INVESTMENT vs. UCHUMI SUPERMARKET PLC | CENTUM INVESTMENT vs. STANDARD CHARTERED BANK |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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