Correlation Between Visa and Maj Invest
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By analyzing existing cross correlation between Visa Class A and Maj Invest Glob, you can compare the effects of market volatilities on Visa and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Maj Invest.
Diversification Opportunities for Visa and Maj Invest
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Maj is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Visa i.e., Visa and Maj Invest go up and down completely randomly.
Pair Corralation between Visa and Maj Invest
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.6 times more return on investment than Maj Invest. However, Visa is 1.6 times more volatile than Maj Invest Glob. It trades about 0.17 of its potential returns per unit of risk. Maj Invest Glob is currently generating about 0.09 per unit of risk. If you would invest 27,379 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 3,803 from holding Visa Class A or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Visa Class A vs. Maj Invest Glob
Performance |
| Timeline |
| Visa Class A |
| Maj Invest Glob |
Visa and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Maj Invest
The main advantage of trading using opposite Visa and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Maj Invest vs. Jyske Bank AS | Maj Invest vs. Strategic Investments AS | Maj Invest vs. PARKEN Sport Entertainment | Maj Invest vs. BankIn Bredygt Klimaakt |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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