Correlation Between Visa and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Visa and Mainstay Map 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 Mainstay Map 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 Mainstay Map Equity, you can compare the effects of market volatilities on Visa and Mainstay Map 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 Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mainstay Map.
Diversification Opportunities for Visa and Mainstay Map
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Visa i.e., Visa and Mainstay Map go up and down completely randomly.
Pair Corralation between Visa and Mainstay Map
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.48 times more return on investment than Mainstay Map. However, Visa is 1.48 times more volatile than Mainstay Map Equity. It trades about 0.35 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.3 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Visa Class A vs. Mainstay Map Equity
Performance |
| Timeline |
| Visa Class A |
| Mainstay Map Equity |
Visa and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Mainstay Map
The main advantage of trading using opposite Visa and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Mainstay Map vs. Pace High Yield | Mainstay Map vs. Alpine High Yield | Mainstay Map vs. Federated Institutional High | Mainstay Map vs. Mesirow Financial High |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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