Correlation Between Visa and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Visa and Tower Bersama 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 Tower Bersama 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 Tower Bersama Infrastructure, you can compare the effects of market volatilities on Visa and Tower Bersama 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 Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Tower Bersama.
Diversification Opportunities for Visa and Tower Bersama
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Tower is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras 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 Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of Visa i.e., Visa and Tower Bersama go up and down completely randomly.
Pair Corralation between Visa and Tower Bersama
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.76 times more return on investment than Tower Bersama. However, Visa Class A is 1.31 times less risky than Tower Bersama. It trades about 0.45 of its potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about -0.06 per unit of risk. If you would invest 31,440 in Visa Class A on November 3, 2024 and sell it today you would earn a total of 2,740 from holding Visa Class A or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Visa Class A vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Visa Class A |
| Tower Bersama Infras |
Visa and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Tower Bersama
The main advantage of trading using opposite Visa and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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