Correlation Between Visa and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both Visa and KERRY EXPRESS 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 KERRY EXPRESS 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 KERRY EXPRESS, you can compare the effects of market volatilities on Visa and KERRY EXPRESS 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 KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and KERRY EXPRESS.
Diversification Opportunities for Visa and KERRY EXPRESS
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and KERRY is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS 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 KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of Visa i.e., Visa and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between Visa and KERRY EXPRESS
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.16 times more return on investment than KERRY EXPRESS. However, Visa Class A is 6.08 times less risky than KERRY EXPRESS. It trades about 0.09 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.06 per unit of risk. If you would invest 25,380 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 6,285 from holding Visa Class A or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Visa Class A vs. KERRY EXPRESS
Performance |
| Timeline |
| Visa Class A |
| KERRY EXPRESS |
Visa and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and KERRY EXPRESS
The main advantage of trading using opposite Visa and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| KERRY EXPRESS vs. ABSOLUTE CLEAN ENERGY | KERRY EXPRESS vs. Mena Transport Public | KERRY EXPRESS vs. Ramkhamhaeng Hospital Public | KERRY EXPRESS vs. Sri panwa Hospitality |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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