Correlation Between Visa and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both Visa and SalMar ASA 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 SalMar ASA 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 SalMar ASA, you can compare the effects of market volatilities on Visa and SalMar ASA 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 SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and SalMar ASA.
Diversification Opportunities for Visa and SalMar ASA
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and SalMar is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA 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 SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of Visa i.e., Visa and SalMar ASA go up and down completely randomly.
Pair Corralation between Visa and SalMar ASA
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.4 times more return on investment than SalMar ASA. However, Visa Class A is 2.49 times less risky than SalMar ASA. It trades about 0.05 of its potential returns per unit of risk. SalMar ASA is currently generating about -0.22 per unit of risk. If you would invest 31,722 in Visa Class A on October 24, 2024 and sell it today you would earn a total of 240.00 from holding Visa Class A or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Visa Class A vs. SalMar ASA
Performance |
| Timeline |
| Visa Class A |
| SalMar ASA |
Visa and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and SalMar ASA
The main advantage of trading using opposite Visa and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, SalMar ASA 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| SalMar ASA vs. Austevoll Seafood ASA | SalMar ASA vs. Golden Agri Resources | SalMar ASA vs. SalMar ASA | SalMar ASA vs. Wilmar International |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |