Correlation Between Visa and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Visa and Gan Shmuel 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 Gan Shmuel 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 Gan Shmuel, you can compare the effects of market volatilities on Visa and Gan Shmuel 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 Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Gan Shmuel.
Diversification Opportunities for Visa and Gan Shmuel
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Gan is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel 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 Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Visa i.e., Visa and Gan Shmuel go up and down completely randomly.
Pair Corralation between Visa and Gan Shmuel
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.27 times more return on investment than Gan Shmuel. However, Visa Class A is 3.64 times less risky than Gan Shmuel. It trades about 0.33 of its potential returns per unit of risk. Gan Shmuel is currently generating about -0.35 per unit of risk. If you would invest 34,247 in Visa Class A on December 1, 2024 and sell it today you would earn a total of 2,024 from holding Visa Class A or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Visa Class A vs. Gan Shmuel
Performance |
| Timeline |
| Visa Class A |
| Gan Shmuel |
Visa and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Gan Shmuel
The main advantage of trading using opposite Visa and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Gan Shmuel vs. Neto ME Holdings | Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Salomon A Angel | Gan Shmuel vs. Sano Brunos Enterprises |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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