Correlation Between Visa and TTK Healthcare

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Visa and TTK Healthcare 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 TTK Healthcare 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 TTK Healthcare Limited, you can compare the effects of market volatilities on Visa and TTK Healthcare 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 TTK Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and TTK Healthcare.

Diversification Opportunities for Visa and TTK Healthcare

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Visa and TTK is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and TTK Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTK Healthcare 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 TTK Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTK Healthcare has no effect on the direction of Visa i.e., Visa and TTK Healthcare go up and down completely randomly.

Pair Corralation between Visa and TTK Healthcare

Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.7 times more return on investment than TTK Healthcare. However, Visa Class A is 1.43 times less risky than TTK Healthcare. It trades about 0.34 of its potential returns per unit of risk. TTK Healthcare Limited is currently generating about -0.06 per unit of risk. If you would invest  29,018  in Visa Class A on September 2, 2024 and sell it today you would earn a total of  2,490  from holding Visa Class A or generate 8.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Visa Class A  vs.  TTK Healthcare Limited

 Performance 
       Timeline  
Visa Class A 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.
TTK Healthcare 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days TTK Healthcare Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, TTK Healthcare is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Visa and TTK Healthcare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Visa and TTK Healthcare

The main advantage of trading using opposite Visa and TTK Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, TTK Healthcare 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 TTK Healthcare will offset losses from the drop in TTK Healthcare's long position.
Visa vs. American Express
Visa vs. PayPal Holdings
Visa vs. Capital One Financial
Visa vs. Upstart Holdings
The idea behind Visa Class A and TTK Healthcare Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
TTK Healthcare vs. MRF Limited
TTK Healthcare vs. Bosch Limited
TTK Healthcare vs. Bajaj Holdings Investment
TTK Healthcare vs. Vardhman Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Content Syndication
Quickly integrate customizable finance content to your own investment portal


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY