Correlation Between Visa and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Visa and Quanergy Systems 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 Quanergy Systems 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 Quanergy Systems, you can compare the effects of market volatilities on Visa and Quanergy Systems 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 Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Quanergy Systems.
Diversification Opportunities for Visa and Quanergy Systems
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Quanergy is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems 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 Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Visa i.e., Visa and Quanergy Systems go up and down completely randomly.
Pair Corralation between Visa and Quanergy Systems
If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Visa Class A vs. Quanergy Systems
Performance |
| Timeline |
| Visa Class A |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Quanergy Systems
The main advantage of trading using opposite Visa and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Quanergy Systems vs. Weyco Group | Quanergy Systems vs. Getty Images Holdings | Quanergy Systems vs. Skechers USA | Quanergy Systems vs. Eastern Co |
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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