Correlation Between Visa and NESTLE NIGERIA
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By analyzing existing cross correlation between Visa Class A and NESTLE NIGERIA PLC, you can compare the effects of market volatilities on Visa and NESTLE NIGERIA 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 NESTLE NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and NESTLE NIGERIA.
Diversification Opportunities for Visa and NESTLE NIGERIA
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and NESTLE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and NESTLE NIGERIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTLE NIGERIA PLC 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 NESTLE NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTLE NIGERIA PLC has no effect on the direction of Visa i.e., Visa and NESTLE NIGERIA go up and down completely randomly.
Pair Corralation between Visa and NESTLE NIGERIA
If you would invest 31,722 in Visa Class A on October 23, 2024 and sell it today you would earn a total of 641.00 from holding Visa Class A or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. NESTLE NIGERIA PLC
Performance |
| Timeline |
| Visa Class A |
| NESTLE NIGERIA PLC |
Visa and NESTLE NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and NESTLE NIGERIA
The main advantage of trading using opposite Visa and NESTLE NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, NESTLE NIGERIA 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 NESTLE NIGERIA will offset losses from the drop in NESTLE NIGERIA's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| NESTLE NIGERIA vs. AIICO INSURANCE PLC | NESTLE NIGERIA vs. STACO INSURANCE PLC | NESTLE NIGERIA vs. JAIZ BANK PLC | NESTLE NIGERIA vs. LIVINGTRUST MORTGAGE BANK |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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