Correlation Between Visa and AFLAC
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By analyzing existing cross correlation between Visa Class A and AFLAC INC 4, you can compare the effects of market volatilities on Visa and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and AFLAC.
Diversification Opportunities for Visa and AFLAC
Very good diversification
The 3 months correlation between Visa and AFLAC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of Visa i.e., Visa and AFLAC go up and down completely randomly.
Pair Corralation between Visa and AFLAC
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.71 times more return on investment than AFLAC. However, Visa Class A is 1.41 times less risky than AFLAC. It trades about 0.37 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about 0.19 per unit of risk. If you would invest 28,365 in Visa Class A on August 27, 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 | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Visa Class A vs. AFLAC INC 4
Performance |
| Timeline |
| Visa Class A |
| AFLAC INC 4 |
Visa and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and AFLAC
The main advantage of trading using opposite Visa and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| AFLAC vs. AEP TEX INC | AFLAC vs. US BANK NATIONAL | AFLAC vs. Eat Beyond Global | AFLAC vs. Charles Schwab Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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