Correlation Between Visa and Keyence
Can any of the company-specific risk be diversified away by investing in both Visa and Keyence 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 Keyence 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 Keyence, you can compare the effects of market volatilities on Visa and Keyence 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 Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Keyence.
Diversification Opportunities for Visa and Keyence
Pay attention - limited upside
The 3 months correlation between Visa and Keyence is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Visa i.e., Visa and Keyence go up and down completely randomly.
Pair Corralation between Visa and Keyence
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.54 times more return on investment than Keyence. However, Visa Class A is 1.85 times less risky than Keyence. It trades about 0.08 of its potential returns per unit of risk. Keyence is currently generating about 0.01 per unit of risk. If you would invest 21,038 in Visa Class A on August 25, 2024 and sell it today you would earn a total of 9,954 from holding Visa Class A or generate 47.31% 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. Keyence
Performance |
| Timeline |
| Visa Class A |
| Keyence |
Visa and Keyence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Keyence
The main advantage of trading using opposite Visa and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Keyence vs. Fortive Corp | Keyence vs. MKS Instruments | Keyence vs. Novanta | Keyence vs. Sensata Technologies Holding |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |