Correlation Between Visa and Takkt AG
Can any of the company-specific risk be diversified away by investing in both Visa and Takkt AG 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 Takkt AG 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 Takkt AG, you can compare the effects of market volatilities on Visa and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Takkt AG.
Diversification Opportunities for Visa and Takkt AG
Pay attention - limited upside
The 3 months correlation between Visa and Takkt is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Visa i.e., Visa and Takkt AG go up and down completely randomly.
Pair Corralation between Visa and Takkt AG
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.22 times more return on investment than Takkt AG. However, Visa is 1.22 times more volatile than Takkt AG. It trades about 0.37 of its potential returns per unit of risk. Takkt AG is currently generating about -0.6 per unit of risk. If you would invest 28,365 in Visa Class A on August 28, 2024 and sell it today you would earn a total of 2,954 from holding Visa Class A or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Takkt AG
Performance |
| Timeline |
| Visa Class A |
| Takkt AG |
Visa and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Takkt AG
The main advantage of trading using opposite Visa and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Takkt AG vs. Lion One Metals | Takkt AG vs. Dave Busters Entertainment | Takkt AG vs. Perseus Mining Limited | Takkt AG vs. Beijing 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |