Correlation Between Visa and Sixt SE
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By analyzing existing cross correlation between Visa Class A and Sixt SE, you can compare the effects of market volatilities on Visa and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Sixt SE.
Diversification Opportunities for Visa and Sixt SE
Modest diversification
The 3 months correlation between Visa and Sixt is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Visa i.e., Visa and Sixt SE go up and down completely randomly.
Pair Corralation between Visa and Sixt SE
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.57 times more return on investment than Sixt SE. However, Visa Class A is 1.75 times less risky than Sixt SE. It trades about 0.09 of its potential returns per unit of risk. Sixt SE is currently generating about 0.02 per unit of risk. If you would invest 21,003 in Visa Class A on September 4, 2024 and sell it today you would earn a total of 10,662 from holding Visa Class A or generate 50.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Visa Class A vs. Sixt SE
Performance |
| Timeline |
| Visa Class A |
| Sixt SE |
Visa and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Sixt SE
The main advantage of trading using opposite Visa and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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