Correlation Between Visa and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Visa and Jacob Internet 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 Jacob Internet 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 Jacob Internet Fund, you can compare the effects of market volatilities on Visa and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jacob Internet.
Diversification Opportunities for Visa and Jacob Internet
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Visa and Jacob is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Visa i.e., Visa and Jacob Internet go up and down completely randomly.
Pair Corralation between Visa and Jacob Internet
Taking into account the 90-day investment horizon Visa is expected to generate 1.67 times less return on investment than Jacob Internet. But when comparing it to its historical volatility, Visa Class A is 2.66 times less risky than Jacob Internet. It trades about 0.09 of its potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 586.00 in Jacob Internet Fund on October 20, 2024 and sell it today you would earn a total of 12.00 from holding Jacob Internet Fund or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Visa Class A vs. Jacob Internet Fund
Performance |
| Timeline |
| Visa Class A |
| Jacob Internet |
Visa and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jacob Internet
The main advantage of trading using opposite Visa and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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