Correlation Between Visa and ICEX Main
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By analyzing existing cross correlation between Visa Class A and ICEX Main, you can compare the effects of market volatilities on Visa and ICEX Main 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 ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and ICEX Main.
Diversification Opportunities for Visa and ICEX Main
Very weak diversification
The 3 months correlation between Visa and ICEX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main 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 ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of Visa i.e., Visa and ICEX Main go up and down completely randomly.
Pair Corralation between Visa and ICEX Main
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.09 times more return on investment than ICEX Main. However, Visa is 1.09 times more volatile than ICEX Main. It trades about 0.09 of its potential returns per unit of risk. ICEX Main is currently generating about 0.03 per unit of risk. If you would invest 23,713 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 7,692 from holding Visa Class A or generate 32.44% 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. ICEX Main
Performance |
| Timeline |
Visa and ICEX Main Volatility Contrast
Predicted Return Density |
| Returns |
Visa Class A
Pair trading matchups for Visa
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with Visa and ICEX Main
The main advantage of trading using opposite Visa and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| ICEX Main vs. Icelandair Group hf | ICEX Main vs. Arion banki hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Alvotech |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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