Correlation Between Visa and Sparinv SICAV
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By analyzing existing cross correlation between Visa Class A and Sparinv SICAV, you can compare the effects of market volatilities on Visa and Sparinv SICAV 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 Sparinv SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Sparinv SICAV.
Diversification Opportunities for Visa and Sparinv SICAV
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and Sparinv is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Sparinv SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinv SICAV 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 Sparinv SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinv SICAV has no effect on the direction of Visa i.e., Visa and Sparinv SICAV go up and down completely randomly.
Pair Corralation between Visa and Sparinv SICAV
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.5 times more return on investment than Sparinv SICAV. However, Visa is 1.5 times more volatile than Sparinv SICAV. It trades about 0.08 of its potential returns per unit of risk. Sparinv SICAV is currently generating about 0.09 per unit of risk. If you would invest 25,641 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 5,738 from holding Visa Class A or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Sparinv SICAV
Performance |
| Timeline |
| Visa Class A |
| Sparinv SICAV |
Visa and Sparinv SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Sparinv SICAV
The main advantage of trading using opposite Visa and Sparinv SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Sparinv SICAV 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 Sparinv SICAV will offset losses from the drop in Sparinv SICAV's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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