Correlation Between Visa and Imed Infinity
Can any of the company-specific risk be diversified away by investing in both Visa and Imed Infinity 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 Imed Infinity 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 Imed Infinity Medical Limited, you can compare the effects of market volatilities on Visa and Imed Infinity 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 Imed Infinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Imed Infinity.
Diversification Opportunities for Visa and Imed Infinity
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Imed is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Imed Infinity Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imed Infinity Medical 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 Imed Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imed Infinity Medical has no effect on the direction of Visa i.e., Visa and Imed Infinity go up and down completely randomly.
Pair Corralation between Visa and Imed Infinity
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.67 times more return on investment than Imed Infinity. However, Visa Class A is 1.5 times less risky than Imed Infinity. It trades about 0.35 of its potential returns per unit of risk. Imed Infinity Medical Limited is currently generating about -0.25 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% 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. Imed Infinity Medical Limited
Performance |
| Timeline |
| Visa Class A |
| Imed Infinity Medical |
Visa and Imed Infinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Imed Infinity
The main advantage of trading using opposite Visa and Imed Infinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Imed Infinity 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 Imed Infinity will offset losses from the drop in Imed Infinity's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Imed Infinity vs. ICL Israel Chemicals | Imed Infinity vs. Abra Information Technologies | Imed Infinity vs. Dan Hotels | Imed Infinity vs. Altshuler Shaham Financial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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