Correlation Between Visa and STRAX AB
Can any of the company-specific risk be diversified away by investing in both Visa and STRAX AB 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 STRAX AB 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 STRAX AB SK, you can compare the effects of market volatilities on Visa and STRAX AB 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 STRAX AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and STRAX AB.
Diversification Opportunities for Visa and STRAX AB
Pay attention - limited upside
The 3 months correlation between Visa and STRAX is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and STRAX AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAX AB SK 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 STRAX AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAX AB SK has no effect on the direction of Visa i.e., Visa and STRAX AB go up and down completely randomly.
Pair Corralation between Visa and STRAX AB
Taking into account the 90-day investment horizon Visa is expected to generate 43.48 times less return on investment than STRAX AB. But when comparing it to its historical volatility, Visa Class A is 57.72 times less risky than STRAX AB. It trades about 0.08 of its potential returns per unit of risk. STRAX AB SK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10.00 in STRAX AB SK on October 7, 2024 and sell it today you would lose (9.16) from holding STRAX AB SK or give up 91.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Visa Class A vs. STRAX AB SK
Performance |
| Timeline |
| Visa Class A |
| STRAX AB SK |
Visa and STRAX AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and STRAX AB
The main advantage of trading using opposite Visa and STRAX AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, STRAX AB 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 STRAX AB will offset losses from the drop in STRAX AB's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| STRAX AB vs. PREMIER FOODS | STRAX AB vs. Astral Foods Limited | STRAX AB vs. Jacquet Metal Service | STRAX AB vs. UNITED RENTALS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |