Correlation Between Visa and Global Sukses
Can any of the company-specific risk be diversified away by investing in both Visa and Global Sukses 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 Global Sukses 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 Global Sukses Solusi, you can compare the effects of market volatilities on Visa and Global Sukses 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 Global Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Global Sukses.
Diversification Opportunities for Visa and Global Sukses
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Global is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Global Sukses Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sukses Solusi 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 Global Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sukses Solusi has no effect on the direction of Visa i.e., Visa and Global Sukses go up and down completely randomly.
Pair Corralation between Visa and Global Sukses
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.33 times more return on investment than Global Sukses. However, Visa Class A is 3.05 times less risky than Global Sukses. It trades about 0.34 of its potential returns per unit of risk. Global Sukses Solusi is currently generating about -0.12 per unit of risk. If you would invest 29,018 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 2,490 from holding Visa Class A or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Global Sukses Solusi
Performance |
| Timeline |
| Visa Class A |
| Global Sukses Solusi |
Visa and Global Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Global Sukses
The main advantage of trading using opposite Visa and Global Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Global Sukses 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 Global Sukses will offset losses from the drop in Global Sukses' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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