Correlation Between Visa and Intercure
Can any of the company-specific risk be diversified away by investing in both Visa and Intercure 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 Intercure 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 Intercure, you can compare the effects of market volatilities on Visa and Intercure 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 Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Intercure.
Diversification Opportunities for Visa and Intercure
Pay attention - limited upside
The 3 months correlation between Visa and Intercure is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure 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 Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Visa i.e., Visa and Intercure go up and down completely randomly.
Pair Corralation between Visa and Intercure
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.26 times more return on investment than Intercure. However, Visa Class A is 3.86 times less risky than Intercure. It trades about 0.08 of its potential returns per unit of risk. Intercure is currently generating about -0.06 per unit of risk. If you would invest 21,038 in Visa Class A on August 26, 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 Against |
| Strength | Significant |
| Accuracy | 77.87% |
| Values | Daily Returns |
Visa Class A vs. Intercure
Performance |
| Timeline |
| Visa Class A |
| Intercure |
Visa and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Intercure
The main advantage of trading using opposite Visa and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Intercure 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 Intercure will offset losses from the drop in Intercure's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |