Correlation Between Visa and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Visa and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions, you can compare the effects of market volatilities on Visa and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Iveda Solutions.
Diversification Opportunities for Visa and Iveda Solutions
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Iveda is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Visa i.e., Visa and Iveda Solutions go up and down completely randomly.
Pair Corralation between Visa and Iveda Solutions
Taking into account the 90-day investment horizon Visa is expected to generate 2.11 times less return on investment than Iveda Solutions. But when comparing it to its historical volatility, Visa Class A is 8.93 times less risky than Iveda Solutions. It trades about 0.37 of its potential returns per unit of risk. Iveda Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 166.00 in Iveda Solutions on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Iveda Solutions or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Iveda Solutions
Performance |
| Timeline |
| Visa Class A |
| Iveda Solutions |
Visa and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Iveda Solutions
The main advantage of trading using opposite Visa and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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