Correlation Between Visa and GTS Internasional
Can any of the company-specific risk be diversified away by investing in both Visa and GTS Internasional 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 GTS Internasional 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 GTS Internasional Tbk, you can compare the effects of market volatilities on Visa and GTS Internasional 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 GTS Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and GTS Internasional.
Diversification Opportunities for Visa and GTS Internasional
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and GTS is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and GTS Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTS Internasional Tbk 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 GTS Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTS Internasional Tbk has no effect on the direction of Visa i.e., Visa and GTS Internasional go up and down completely randomly.
Pair Corralation between Visa and GTS Internasional
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.38 times more return on investment than GTS Internasional. However, Visa Class A is 2.64 times less risky than GTS Internasional. It trades about 0.08 of its potential returns per unit of risk. GTS Internasional Tbk is currently generating about -0.03 per unit of risk. If you would invest 21,038 in Visa Class A on August 24, 2024 and sell it today you would earn a total of 9,954 from holding Visa Class A or generate 47.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Visa Class A vs. GTS Internasional Tbk
Performance |
| Timeline |
| Visa Class A |
| GTS Internasional Tbk |
Visa and GTS Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and GTS Internasional
The main advantage of trading using opposite Visa and GTS Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, GTS Internasional 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 GTS Internasional will offset losses from the drop in GTS Internasional's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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