Correlation Between Visa and Jbfo Fof
Can any of the company-specific risk be diversified away by investing in both Visa and Jbfo Fof 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 Jbfo Fof 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 Jbfo Fof Fundo, you can compare the effects of market volatilities on Visa and Jbfo Fof 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 Jbfo Fof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Jbfo Fof.
Diversification Opportunities for Visa and Jbfo Fof
Average diversification
The 3 months correlation between Visa and Jbfo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Jbfo Fof Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jbfo Fof Fundo 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 Jbfo Fof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jbfo Fof Fundo has no effect on the direction of Visa i.e., Visa and Jbfo Fof go up and down completely randomly.
Pair Corralation between Visa and Jbfo Fof
Taking into account the 90-day investment horizon Visa is expected to generate 11.08 times less return on investment than Jbfo Fof. But when comparing it to its historical volatility, Visa Class A is 4.91 times less risky than Jbfo Fof. It trades about 0.1 of its potential returns per unit of risk. Jbfo Fof Fundo is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 7,028 in Jbfo Fof Fundo on September 14, 2024 and sell it today you would earn a total of 1,173 from holding Jbfo Fof Fundo or generate 16.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. Jbfo Fof Fundo
Performance |
| Timeline |
| Visa Class A |
| Jbfo Fof Fundo |
Visa and Jbfo Fof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Jbfo Fof
The main advantage of trading using opposite Visa and Jbfo Fof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Jbfo Fof 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 Jbfo Fof will offset losses from the drop in Jbfo Fof's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Jbfo Fof vs. BTG Pactual Logstica | Jbfo Fof vs. Plano Plano Desenvolvimento | Jbfo Fof vs. Companhia Habitasul de | Jbfo Fof vs. FDO INV IMOB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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