Correlation Between Visa and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Visa and Mega Manunggal 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 Mega Manunggal 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 Mega Manunggal Property, you can compare the effects of market volatilities on Visa and Mega Manunggal 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 Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mega Manunggal.
Diversification Opportunities for Visa and Mega Manunggal
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Mega is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property 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 Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Visa i.e., Visa and Mega Manunggal go up and down completely randomly.
Pair Corralation between Visa and Mega Manunggal
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.45 times more return on investment than Mega Manunggal. However, Visa Class A is 2.22 times less risky than Mega Manunggal. It trades about 0.09 of its potential returns per unit of risk. Mega Manunggal Property is currently generating about 0.01 per unit of risk. If you would invest 20,975 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 10,690 from holding Visa Class A or generate 50.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Visa Class A vs. Mega Manunggal Property
Performance |
| Timeline |
| Visa Class A |
| Mega Manunggal Property |
Visa and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Mega Manunggal
The main advantage of trading using opposite Visa and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Mega Manunggal vs. Mitra Pinasthika Mustika | Mega Manunggal vs. Jakarta Int Hotels | Mega Manunggal vs. Asuransi Harta Aman | Mega Manunggal vs. Indosterling Technomedia 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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