Correlation Between Visa and JE Cleantech
Can any of the company-specific risk be diversified away by investing in both Visa and JE Cleantech 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 JE Cleantech 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 JE Cleantech Holdings, you can compare the effects of market volatilities on Visa and JE Cleantech 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 JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and JE Cleantech.
Diversification Opportunities for Visa and JE Cleantech
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and JCSE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and JE Cleantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JE Cleantech Holdings 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 JE Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JE Cleantech Holdings has no effect on the direction of Visa i.e., Visa and JE Cleantech go up and down completely randomly.
Pair Corralation between Visa and JE Cleantech
Taking into account the 90-day investment horizon Visa is expected to generate 3.2 times less return on investment than JE Cleantech. But when comparing it to its historical volatility, Visa Class A is 9.18 times less risky than JE Cleantech. It trades about 0.09 of its potential returns per unit of risk. JE Cleantech Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 246.00 in JE Cleantech Holdings on November 7, 2024 and sell it today you would lose (78.00) from holding JE Cleantech Holdings or give up 31.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Visa Class A vs. JE Cleantech Holdings
Performance |
| Timeline |
| Visa Class A |
| JE Cleantech Holdings |
Visa and JE Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and JE Cleantech
The main advantage of trading using opposite Visa and JE Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, JE Cleantech 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 JE Cleantech will offset losses from the drop in JE Cleantech's long position.| Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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