Correlation Between Visa and Kngt Clb
Can any of the company-specific risk be diversified away by investing in both Visa and Kngt Clb 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 Kngt Clb 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 Kngt Clb Larg, you can compare the effects of market volatilities on Visa and Kngt Clb 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 Kngt Clb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kngt Clb.
Diversification Opportunities for Visa and Kngt Clb
Poor diversification
The 3 months correlation between Visa and Kngt is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kngt Clb Larg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kngt Clb Larg 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 Kngt Clb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kngt Clb Larg has no effect on the direction of Visa i.e., Visa and Kngt Clb go up and down completely randomly.
Pair Corralation between Visa and Kngt Clb
Taking into account the 90-day investment horizon Visa is expected to generate 1.27 times less return on investment than Kngt Clb. In addition to that, Visa is 1.07 times more volatile than Kngt Clb Larg. It trades about 0.09 of its total potential returns per unit of risk. Kngt Clb Larg is currently generating about 0.12 per unit of volatility. If you would invest 1,260 in Kngt Clb Larg on September 3, 2024 and sell it today you would earn a total of 869.00 from holding Kngt Clb Larg or generate 68.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Kngt Clb Larg
Performance |
| Timeline |
| Visa Class A |
| Kngt Clb Larg |
Visa and Kngt Clb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kngt Clb
The main advantage of trading using opposite Visa and Kngt Clb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kngt Clb 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 Kngt Clb will offset losses from the drop in Kngt Clb's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Kngt Clb vs. Ultra Short Fixed Income | Kngt Clb vs. Balanced Fund Retail | Kngt Clb vs. Multimedia Portfolio Multimedia | Kngt Clb vs. Cutler Equity |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |