Correlation Between Visa and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Visa and Aim Investment 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 Aim Investment 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 Aim Investment Secs, you can compare the effects of market volatilities on Visa and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Aim Investment.
Diversification Opportunities for Visa and Aim Investment
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Aim is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Visa i.e., Visa and Aim Investment go up and down completely randomly.
Pair Corralation between Visa and Aim Investment
If you would invest 28,322 in Visa Class A on August 24, 2024 and sell it today you would earn a total of 2,417 from holding Visa Class A or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Aim Investment Secs
Performance |
| Timeline |
| Visa Class A |
| Aim Investment Secs |
Visa and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Aim Investment
The main advantage of trading using opposite Visa and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Aim Investment vs. Counterpoint Tactical Municipal | Aim Investment vs. Baird Strategic Municipal | Aim Investment vs. Oklahoma Municipal Fund | Aim Investment vs. Ab Impact Municipal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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