Correlation Between Visa and Kinea Rendimentos
Can any of the company-specific risk be diversified away by investing in both Visa and Kinea Rendimentos 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 Kinea Rendimentos 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 Kinea Rendimentos Imobilirios, you can compare the effects of market volatilities on Visa and Kinea Rendimentos 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 Kinea Rendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kinea Rendimentos.
Diversification Opportunities for Visa and Kinea Rendimentos
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Kinea is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Kinea Rendimentos Imobilirios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Rendimentos 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 Kinea Rendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Rendimentos has no effect on the direction of Visa i.e., Visa and Kinea Rendimentos go up and down completely randomly.
Pair Corralation between Visa and Kinea Rendimentos
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.02 times more return on investment than Kinea Rendimentos. However, Visa is 2.02 times more volatile than Kinea Rendimentos Imobilirios. It trades about 0.1 of its potential returns per unit of risk. Kinea Rendimentos Imobilirios is currently generating about 0.08 per unit of risk. If you would invest 22,355 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 9,153 from holding Visa Class A or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Visa Class A vs. Kinea Rendimentos Imobilirios
Performance |
| Timeline |
| Visa Class A |
| Kinea Rendimentos |
Visa and Kinea Rendimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kinea Rendimentos
The main advantage of trading using opposite Visa and Kinea Rendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Kinea Rendimentos 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 Kinea Rendimentos will offset losses from the drop in Kinea Rendimentos' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Kinea Rendimentos vs. Fundos de Investimento | Kinea Rendimentos vs. Brio Multiestrategi Fundo | Kinea Rendimentos vs. TRX Renda Fundo | Kinea Rendimentos vs. HEDGE SEED FUNDO |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |