Correlation Between Visa and Snipp Interactive
Can any of the company-specific risk be diversified away by investing in both Visa and Snipp Interactive 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 Snipp Interactive 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 Snipp Interactive, you can compare the effects of market volatilities on Visa and Snipp Interactive 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 Snipp Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Snipp Interactive.
Diversification Opportunities for Visa and Snipp Interactive
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visa and Snipp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Snipp Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snipp Interactive 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 Snipp Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snipp Interactive has no effect on the direction of Visa i.e., Visa and Snipp Interactive go up and down completely randomly.
Pair Corralation between Visa and Snipp Interactive
Taking into account the 90-day investment horizon Visa is expected to generate 2.22 times less return on investment than Snipp Interactive. But when comparing it to its historical volatility, Visa Class A is 6.51 times less risky than Snipp Interactive. It trades about 0.33 of its potential returns per unit of risk. Snipp Interactive is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4.37 in Snipp Interactive on August 27, 2024 and sell it today you would earn a total of 0.63 from holding Snipp Interactive or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Snipp Interactive
Performance |
| Timeline |
| Visa Class A |
| Snipp Interactive |
Visa and Snipp Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Snipp Interactive
The main advantage of trading using opposite Visa and Snipp Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Snipp Interactive 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 Snipp Interactive will offset losses from the drop in Snipp Interactive's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Snipp Interactive vs. HUMANA INC | Snipp Interactive vs. SCOR PK | Snipp Interactive vs. Aquagold International | Snipp Interactive vs. Barloworld Ltd ADR |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |