Correlation Between Visa and ProShares Merger
Can any of the company-specific risk be diversified away by investing in both Visa and ProShares Merger 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 ProShares Merger 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 ProShares Merger ETF, you can compare the effects of market volatilities on Visa and ProShares Merger 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 ProShares Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and ProShares Merger.
Diversification Opportunities for Visa and ProShares Merger
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and ProShares is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and ProShares Merger ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Merger ETF 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 ProShares Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Merger ETF has no effect on the direction of Visa i.e., Visa and ProShares Merger go up and down completely randomly.
Pair Corralation between Visa and ProShares Merger
Taking into account the 90-day investment horizon Visa Class A is expected to generate 4.22 times more return on investment than ProShares Merger. However, Visa is 4.22 times more volatile than ProShares Merger ETF. It trades about 0.4 of its potential returns per unit of risk. ProShares Merger ETF is currently generating about -0.04 per unit of risk. If you would invest 28,134 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 3,336 from holding Visa Class A or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. ProShares Merger ETF
Performance |
| Timeline |
| Visa Class A |
| ProShares Merger ETF |
Visa and ProShares Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and ProShares Merger
The main advantage of trading using opposite Visa and ProShares Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, ProShares Merger 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 ProShares Merger will offset losses from the drop in ProShares Merger's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| ProShares Merger vs. ProShares Hedge Replication | ProShares Merger vs. IQ Merger Arbitrage | ProShares Merger vs. ProShares Global Listed | ProShares Merger vs. ProShares Investment GradeInterest |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |