Correlation Between Visa and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Visa and Kolibri Global 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 Kolibri Global 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 Kolibri Global Energy, you can compare the effects of market volatilities on Visa and Kolibri Global 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 Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kolibri Global.
Diversification Opportunities for Visa and Kolibri Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Kolibri is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy 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 Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Visa i.e., Visa and Kolibri Global go up and down completely randomly.
Pair Corralation between Visa and Kolibri Global
If you would invest 24,113 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 7,395 from holding Visa Class A or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Visa Class A vs. Kolibri Global Energy
Performance |
| Timeline |
| Visa Class A |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kolibri Global
The main advantage of trading using opposite Visa and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Kolibri Global vs. PetroShale | Kolibri Global vs. InPlay Oil Corp | Kolibri Global vs. Petrus Resources | Kolibri Global vs. Journey Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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