Correlation Between Visa and Global Li-Ion
Can any of the company-specific risk be diversified away by investing in both Visa and Global Li-Ion 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 Global Li-Ion 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 Global Li Ion Graphite, you can compare the effects of market volatilities on Visa and Global Li-Ion 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 Global Li-Ion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Global Li-Ion.
Diversification Opportunities for Visa and Global Li-Ion
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Global is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Global Li Ion Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Li Ion 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 Global Li-Ion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Li Ion has no effect on the direction of Visa i.e., Visa and Global Li-Ion go up and down completely randomly.
Pair Corralation between Visa and Global Li-Ion
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.06 times more return on investment than Global Li-Ion. However, Visa Class A is 16.41 times less risky than Global Li-Ion. It trades about 0.27 of its potential returns per unit of risk. Global Li Ion Graphite is currently generating about 0.0 per unit of risk. If you would invest 27,442 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 3,740 from holding Visa Class A or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Visa Class A vs. Global Li Ion Graphite
Performance |
| Timeline |
| Visa Class A |
| Global Li Ion |
Visa and Global Li-Ion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Global Li-Ion
The main advantage of trading using opposite Visa and Global Li-Ion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Global Li-Ion 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 Global Li-Ion will offset losses from the drop in Global Li-Ion's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Global Li-Ion vs. Nova Lithium Corp | Global Li-Ion vs. Qubec Nickel Corp | Global Li-Ion vs. SPC Nickel Corp | Global Li-Ion vs. CDN Maverick Capital |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |