Correlation Between Visa and Plug Power
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and Plug Power, you can compare the effects of market volatilities on Visa and Plug Power 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 Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Plug Power.
Diversification Opportunities for Visa and Plug Power
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Plug is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power 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 Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Visa i.e., Visa and Plug Power go up and down completely randomly.
Pair Corralation between Visa and Plug Power
Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Plug Power. But the stock apears to be less risky and, when comparing its historical volatility, Visa Class A is 8.45 times less risky than Plug Power. The stock trades about -0.11 of its potential returns per unit of risk. The Plug Power is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Plug Power on October 13, 2024 and sell it today you would earn a total of 17.00 from holding Plug Power or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Visa Class A vs. Plug Power
Performance |
| Timeline |
| Visa Class A |
| Plug Power |
Visa and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Plug Power
The main advantage of trading using opposite Visa and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Plug Power vs. Singapore Airlines Limited | Plug Power vs. Keck Seng Investments | Plug Power vs. AGNC INVESTMENT | Plug Power vs. Gol Intelligent Airlines |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |