Correlation Between Visa and KLOECKNER
Can any of the company-specific risk be diversified away by investing in both Visa and KLOECKNER 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 KLOECKNER 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 KLOECKNER N , you can compare the effects of market volatilities on Visa and KLOECKNER 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 KLOECKNER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and KLOECKNER.
Diversification Opportunities for Visa and KLOECKNER
Pay attention - limited upside
The 3 months correlation between Visa and KLOECKNER is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KLOECKNER N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLOECKNER N 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 KLOECKNER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLOECKNER N has no effect on the direction of Visa i.e., Visa and KLOECKNER go up and down completely randomly.
Pair Corralation between Visa and KLOECKNER
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.65 times more return on investment than KLOECKNER. However, Visa Class A is 1.54 times less risky than KLOECKNER. It trades about 0.31 of its potential returns per unit of risk. KLOECKNER N is currently generating about -0.07 per unit of risk. If you would invest 28,322 in Visa Class A on August 24, 2024 and sell it today you would earn a total of 2,670 from holding Visa Class A or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. KLOECKNER N
Performance |
| Timeline |
| Visa Class A |
| KLOECKNER N |
Visa and KLOECKNER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and KLOECKNER
The main advantage of trading using opposite Visa and KLOECKNER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, KLOECKNER 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 KLOECKNER will offset losses from the drop in KLOECKNER's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| KLOECKNER vs. Lion One Metals | KLOECKNER vs. Perseus Mining Limited | KLOECKNER vs. HEALTHCARE REAL A | KLOECKNER vs. Bumrungrad Hospital Public |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |