Correlation Between Visa and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Visa and Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Visa and Graha Andrasentra 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 Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Graha Andrasentra.
Diversification Opportunities for Visa and Graha Andrasentra
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Graha is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra 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 Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Visa i.e., Visa and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Visa and Graha Andrasentra
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.12 times more return on investment than Graha Andrasentra. However, Visa Class A is 8.28 times less risky than Graha Andrasentra. It trades about 0.34 of its potential returns per unit of risk. Graha Andrasentra Propertindo is currently generating about -0.01 per unit of risk. If you would invest 29,018 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 2,490 from holding Visa Class A or generate 8.58% 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. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Visa Class A |
| Graha Andrasentra |
Visa and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Graha Andrasentra
The main advantage of trading using opposite Visa and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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