Correlation Between Visa and ACADIA
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By analyzing existing cross correlation between Visa Class A and ACADIA HEALTHCARE INC, you can compare the effects of market volatilities on Visa and ACADIA 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 ACADIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and ACADIA.
Diversification Opportunities for Visa and ACADIA
Very good diversification
The 3 months correlation between Visa and ACADIA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and ACADIA HEALTHCARE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACADIA HEALTHCARE INC 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 ACADIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACADIA HEALTHCARE INC has no effect on the direction of Visa i.e., Visa and ACADIA go up and down completely randomly.
Pair Corralation between Visa and ACADIA
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.23 times more return on investment than ACADIA. However, Visa is 2.23 times more volatile than ACADIA HEALTHCARE INC. It trades about 0.17 of its potential returns per unit of risk. ACADIA HEALTHCARE INC is currently generating about -0.15 per unit of risk. If you would invest 27,584 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 3,886 from holding Visa Class A or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Visa Class A vs. ACADIA HEALTHCARE INC
Performance |
| Timeline |
| Visa Class A |
| ACADIA HEALTHCARE INC |
Visa and ACADIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and ACADIA
The main advantage of trading using opposite Visa and ACADIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, ACADIA 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 ACADIA will offset losses from the drop in ACADIA's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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