Correlation Between Visa and Lini Imaji
Can any of the company-specific risk be diversified away by investing in both Visa and Lini Imaji 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 Lini Imaji 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 Lini Imaji Kreasi, you can compare the effects of market volatilities on Visa and Lini Imaji 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 Lini Imaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Lini Imaji.
Diversification Opportunities for Visa and Lini Imaji
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Lini is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Lini Imaji Kreasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lini Imaji Kreasi 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 Lini Imaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lini Imaji Kreasi has no effect on the direction of Visa i.e., Visa and Lini Imaji go up and down completely randomly.
Pair Corralation between Visa and Lini Imaji
Taking into account the 90-day investment horizon Visa is expected to generate 4.88 times less return on investment than Lini Imaji. But when comparing it to its historical volatility, Visa Class A is 8.83 times less risky than Lini Imaji. It trades about 0.34 of its potential returns per unit of risk. Lini Imaji Kreasi is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7,700 in Lini Imaji Kreasi on September 2, 2024 and sell it today you would earn a total of 2,700 from holding Lini Imaji Kreasi or generate 35.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Lini Imaji Kreasi
Performance |
| Timeline |
| Visa Class A |
| Lini Imaji Kreasi |
Visa and Lini Imaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Lini Imaji
The main advantage of trading using opposite Visa and Lini Imaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Lini Imaji 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 Lini Imaji will offset losses from the drop in Lini Imaji's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Lini Imaji vs. Diamond Food Indonesia | Lini Imaji vs. Communication Cable Systems | Lini Imaji vs. Weha Transportasi Indonesia | Lini Imaji vs. Garuda Metalindo Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |