Correlation Between Visa and Kelt Exploration
Can any of the company-specific risk be diversified away by investing in both Visa and Kelt Exploration 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 Kelt Exploration 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 Kelt Exploration, you can compare the effects of market volatilities on Visa and Kelt Exploration 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 Kelt Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kelt Exploration.
Diversification Opportunities for Visa and Kelt Exploration
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Kelt is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kelt Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelt Exploration 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 Kelt Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelt Exploration has no effect on the direction of Visa i.e., Visa and Kelt Exploration go up and down completely randomly.
Pair Corralation between Visa and Kelt Exploration
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.56 times more return on investment than Kelt Exploration. However, Visa Class A is 1.77 times less risky than Kelt Exploration. It trades about 0.1 of its potential returns per unit of risk. Kelt Exploration is currently generating about 0.05 per unit of risk. If you would invest 27,024 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 4,295 from holding Visa Class A or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Visa Class A vs. Kelt Exploration
Performance |
| Timeline |
| Visa Class A |
| Kelt Exploration |
Visa and Kelt Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kelt Exploration
The main advantage of trading using opposite Visa and Kelt Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kelt Exploration 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 Kelt Exploration will offset losses from the drop in Kelt Exploration's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Kelt Exploration vs. Yangarra Resources | Kelt Exploration vs. iShares Canadian HYBrid | Kelt Exploration vs. Altagas Cum Red | Kelt Exploration vs. European Residential Real |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |