Correlation Between Visa and KENYA AIRWAYS
Can any of the company-specific risk be diversified away by investing in both Visa and KENYA AIRWAYS 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 KENYA AIRWAYS 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 KENYA AIRWAYS LTD, you can compare the effects of market volatilities on Visa and KENYA AIRWAYS 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 KENYA AIRWAYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and KENYA AIRWAYS.
Diversification Opportunities for Visa and KENYA AIRWAYS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and KENYA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KENYA AIRWAYS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA AIRWAYS LTD 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 KENYA AIRWAYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA AIRWAYS LTD has no effect on the direction of Visa i.e., Visa and KENYA AIRWAYS go up and down completely randomly.
Pair Corralation between Visa and KENYA AIRWAYS
If you would invest 22,047 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 9,461 from holding Visa Class A or generate 42.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.13% |
| Values | Daily Returns |
Visa Class A vs. KENYA AIRWAYS LTD
Performance |
| Timeline |
| Visa Class A |
| KENYA AIRWAYS LTD |
Visa and KENYA AIRWAYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and KENYA AIRWAYS
The main advantage of trading using opposite Visa and KENYA AIRWAYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, KENYA AIRWAYS 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 KENYA AIRWAYS will offset losses from the drop in KENYA AIRWAYS's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| KENYA AIRWAYS vs. MAENDELEO BANK PLC | KENYA AIRWAYS vs. AFRIPRISE INVESTMENT PLC | KENYA AIRWAYS vs. SWISSPORT TANZANIA LTD | KENYA AIRWAYS vs. MKOMBOZI MERCIAL BANK |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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