Correlation Between Visa and SDAX Index
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By analyzing existing cross correlation between Visa Class A and SDAX Index, you can compare the effects of market volatilities on Visa and SDAX Index 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 SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and SDAX Index.
Diversification Opportunities for Visa and SDAX Index
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and SDAX is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index 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 SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of Visa i.e., Visa and SDAX Index go up and down completely randomly.
Pair Corralation between Visa and SDAX Index
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.14 times more return on investment than SDAX Index. However, Visa is 1.14 times more volatile than SDAX Index. It trades about 0.35 of its potential returns per unit of risk. SDAX Index is currently generating about 0.07 per unit of risk. If you would invest 28,929 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 2,579 from holding Visa Class A or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Visa Class A vs. SDAX Index
Performance |
| Timeline |
Visa and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Visa Class A
Pair trading matchups for Visa
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with Visa and SDAX Index
The main advantage of trading using opposite Visa and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| SDAX Index vs. National Retail Properties | SDAX Index vs. Canon Marketing Japan | SDAX Index vs. SERI INDUSTRIAL EO | SDAX Index vs. GREENX METALS LTD |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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