Correlation Between Visa and Minor International
Can any of the company-specific risk be diversified away by investing in both Visa and Minor International 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 Minor International 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 Minor International PCL, you can compare the effects of market volatilities on Visa and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Minor International.
Diversification Opportunities for Visa and Minor International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Visa and Minor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Minor International PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International PCL 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International PCL has no effect on the direction of Visa i.e., Visa and Minor International go up and down completely randomly.
Pair Corralation between Visa and Minor International
If you would invest 30,948 in Visa Class A on September 14, 2024 and sell it today you would earn a total of 475.00 from holding Visa Class A or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Visa Class A vs. Minor International PCL
Performance |
| Timeline |
| Visa Class A |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Minor International
The main advantage of trading using opposite Visa and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Minor International vs. HE Equipment Services | Minor International vs. United Rentals | Minor International vs. WPP PLC ADR | Minor International vs. 51Talk Online Education |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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