Correlation Between Visa and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Visa and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on Visa and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Hyster Yale.
Diversification Opportunities for Visa and Hyster Yale
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Hyster is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Visa i.e., Visa and Hyster Yale go up and down completely randomly.
Pair Corralation between Visa and Hyster Yale
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.41 times more return on investment than Hyster Yale. However, Visa Class A is 2.47 times less risky than Hyster Yale. It trades about 0.11 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.05 per unit of risk. If you would invest 26,781 in Visa Class A on August 27, 2024 and sell it today you would earn a total of 4,538 from holding Visa Class A or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Visa Class A |
| Hyster Yale Materials |
Visa and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Hyster Yale
The main advantage of trading using opposite Visa and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Hyster Yale vs. Nikola Corp | Hyster Yale vs. Wabash National | Hyster Yale vs. American Premium Water | Hyster Yale vs. Titan International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |