Correlation Between Visa and CoreShares

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Visa and CoreShares 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 CoreShares 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 CoreShares SP Global, you can compare the effects of market volatilities on Visa and CoreShares 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 CoreShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CoreShares.

Diversification Opportunities for Visa and CoreShares

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Visa and CoreShares is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CoreShares SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares SP Global 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 CoreShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares SP Global has no effect on the direction of Visa i.e., Visa and CoreShares go up and down completely randomly.

Pair Corralation between Visa and CoreShares

Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.24 times more return on investment than CoreShares. However, Visa is 1.24 times more volatile than CoreShares SP Global. It trades about 0.1 of its potential returns per unit of risk. CoreShares SP Global is currently generating about 0.03 per unit of risk. If you would invest  21,661  in Visa Class A on November 19, 2024 and sell it today you would earn a total of  13,720  from holding Visa Class A or generate 63.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.19%
ValuesDaily Returns

Visa Class A  vs.  CoreShares SP Global

 Performance 
       Timeline  
Visa Class A 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.
CoreShares SP Global 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CoreShares SP Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, CoreShares is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Visa and CoreShares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Visa and CoreShares

The main advantage of trading using opposite Visa and CoreShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CoreShares 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 CoreShares will offset losses from the drop in CoreShares' long position.
Visa vs. American Express
Visa vs. PayPal Holdings
Visa vs. Capital One Financial
Visa vs. Upstart Holdings
The idea behind Visa Class A and CoreShares SP Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
CoreShares vs. CoreShares SP 500
CoreShares vs. CoreShares Income AMETF
CoreShares vs. CoreShares Preference Share
CoreShares vs. CoreShares Yield Selected
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
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
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY