Correlation Between Visa and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Visa and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on Visa and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Lenox Pasifik.
Diversification Opportunities for Visa and Lenox Pasifik
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Lenox is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Visa i.e., Visa and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Visa and Lenox Pasifik
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.28 times more return on investment than Lenox Pasifik. However, Visa Class A is 3.56 times less risky than Lenox Pasifik. It trades about 0.08 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about 0.01 per unit of risk. If you would invest 23,668 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 7,651 from holding Visa Class A or generate 32.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.48% |
| Values | Daily Returns |
Visa Class A vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Visa Class A |
| Lenox Pasifik Investama |
Visa and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Lenox Pasifik
The main advantage of trading using opposite Visa and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest Tbk |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |