Correlation Between Visa and QEP Resources
Can any of the company-specific risk be diversified away by investing in both Visa and QEP Resources 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 QEP Resources 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 QEP Resources, you can compare the effects of market volatilities on Visa and QEP Resources 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 QEP Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and QEP Resources.
Diversification Opportunities for Visa and QEP Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and QEP Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Resources 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 QEP Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Resources has no effect on the direction of Visa i.e., Visa and QEP Resources go up and down completely randomly.
Pair Corralation between Visa and QEP Resources
If you would invest 22,072 in Visa Class A on October 13, 2024 and sell it today you would earn a total of 8,699 from holding Visa Class A or generate 39.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Visa Class A vs. QEP Resources
Performance |
| Timeline |
| Visa Class A |
| QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and QEP Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and QEP Resources
The main advantage of trading using opposite Visa and QEP Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, QEP Resources 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 QEP Resources will offset losses from the drop in QEP Resources' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| QEP Resources vs. Alvotech | QEP Resources vs. Sonida Senior Living | QEP Resources vs. Valneva SE ADR | QEP Resources vs. Universal Insurance Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |