Correlation Between Visa and Swelect Energy
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By analyzing existing cross correlation between Visa Class A and Swelect Energy Systems, you can compare the effects of market volatilities on Visa and Swelect Energy 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 Swelect Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Swelect Energy.
Diversification Opportunities for Visa and Swelect Energy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Swelect is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Swelect Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swelect Energy Systems 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 Swelect Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swelect Energy Systems has no effect on the direction of Visa i.e., Visa and Swelect Energy go up and down completely randomly.
Pair Corralation between Visa and Swelect Energy
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.3 times more return on investment than Swelect Energy. However, Visa Class A is 3.37 times less risky than Swelect Energy. It trades about 0.08 of its potential returns per unit of risk. Swelect Energy Systems is currently generating about 0.0 per unit of risk. If you would invest 26,972 in Visa Class A on October 12, 2024 and sell it today you would earn a total of 4,288 from holding Visa Class A or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Visa Class A vs. Swelect Energy Systems
Performance |
| Timeline |
| Visa Class A |
| Swelect Energy Systems |
Visa and Swelect Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Swelect Energy
The main advantage of trading using opposite Visa and Swelect Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Swelect Energy 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 Swelect Energy will offset losses from the drop in Swelect Energy's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Swelect Energy vs. Kingfa Science Technology | Swelect Energy vs. Rico Auto Industries | Swelect Energy vs. GACM Technologies Limited | Swelect Energy vs. COSMO FIRST LIMITED |
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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