Correlation Between Visa and FNB ETN
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By analyzing existing cross correlation between Visa Class A and FNB ETN GSACHSQ, you can compare the effects of market volatilities on Visa and FNB ETN 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 FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and FNB ETN.
Diversification Opportunities for Visa and FNB ETN
Very poor diversification
The 3 months correlation between Visa and FNB is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and FNB ETN GSACHSQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN GSACHSQ 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 FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN GSACHSQ has no effect on the direction of Visa i.e., Visa and FNB ETN go up and down completely randomly.
Pair Corralation between Visa and FNB ETN
Taking into account the 90-day investment horizon Visa is expected to generate 1.01 times less return on investment than FNB ETN. But when comparing it to its historical volatility, Visa Class A is 1.62 times less risky than FNB ETN. It trades about 0.34 of its potential returns per unit of risk. FNB ETN GSACHSQ is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 315,900 in FNB ETN GSACHSQ on September 2, 2024 and sell it today you would earn a total of 12,500 from holding FNB ETN GSACHSQ or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 47.62% |
| Values | Daily Returns |
Visa Class A vs. FNB ETN GSACHSQ
Performance |
| Timeline |
| Visa Class A |
| FNB ETN GSACHSQ |
Visa and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and FNB ETN
The main advantage of trading using opposite Visa and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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