Correlation Between Visa and Combigene
Can any of the company-specific risk be diversified away by investing in both Visa and Combigene 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 Combigene 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 Combigene AB, you can compare the effects of market volatilities on Visa and Combigene 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 Combigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Combigene.
Diversification Opportunities for Visa and Combigene
Weak diversification
The 3 months correlation between Visa and Combigene is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB 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 Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Visa i.e., Visa and Combigene go up and down completely randomly.
Pair Corralation between Visa and Combigene
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.21 times more return on investment than Combigene. However, Visa Class A is 4.74 times less risky than Combigene. It trades about 0.09 of its potential returns per unit of risk. Combigene AB is currently generating about 0.0 per unit of risk. If you would invest 27,419 in Visa Class A on November 4, 2024 and sell it today you would earn a total of 6,761 from holding Visa Class A or generate 24.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Visa Class A vs. Combigene AB
Performance |
| Timeline |
| Visa Class A |
| Combigene AB |
Visa and Combigene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Combigene
The main advantage of trading using opposite Visa and Combigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Combigene 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 Combigene will offset losses from the drop in Combigene's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Combigene vs. Oncopeptides AB | Combigene vs. Camurus AB | Combigene vs. Hansa Biopharma AB | Combigene vs. Cantargia AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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