Correlation Between Visa and Catalyst Exceed
Can any of the company-specific risk be diversified away by investing in both Visa and Catalyst Exceed 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 Catalyst Exceed 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 Catalyst Exceed Defined, you can compare the effects of market volatilities on Visa and Catalyst Exceed 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 Catalyst Exceed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Catalyst Exceed.
Diversification Opportunities for Visa and Catalyst Exceed
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Catalyst is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined 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 Catalyst Exceed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Exceed Defined has no effect on the direction of Visa i.e., Visa and Catalyst Exceed go up and down completely randomly.
Pair Corralation between Visa and Catalyst Exceed
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.2 times more return on investment than Catalyst Exceed. However, Visa is 1.2 times more volatile than Catalyst Exceed Defined. It trades about 0.09 of its potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.09 per unit of risk. If you would invest 20,975 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 10,533 from holding Visa Class A or generate 50.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Catalyst Exceed Defined
Performance |
| Timeline |
| Visa Class A |
| Catalyst Exceed Defined |
Visa and Catalyst Exceed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Catalyst Exceed
The main advantage of trading using opposite Visa and Catalyst Exceed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Catalyst Exceed 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 Catalyst Exceed will offset losses from the drop in Catalyst Exceed's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Catalyst Exceed vs. Jpmorgan Equity Income | Catalyst Exceed vs. Jpmorgan Hedged Equity | Catalyst Exceed vs. Calamos Market Neutral | Catalyst Exceed vs. Jpmorgan Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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