Correlation Between Visa and EQUINOR
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By analyzing existing cross correlation between Visa Class A and EQUINOR ASA, you can compare the effects of market volatilities on Visa and EQUINOR 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 EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and EQUINOR.
Diversification Opportunities for Visa and EQUINOR
Excellent diversification
The 3 months correlation between Visa and EQUINOR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Visa i.e., Visa and EQUINOR go up and down completely randomly.
Pair Corralation between Visa and EQUINOR
Taking into account the 90-day investment horizon Visa Class A is expected to generate 3.49 times more return on investment than EQUINOR. However, Visa is 3.49 times more volatile than EQUINOR ASA. It trades about 0.16 of its potential returns per unit of risk. EQUINOR ASA is currently generating about -0.12 per unit of risk. If you would invest 27,801 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 3,707 from holding Visa Class A or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Visa Class A vs. EQUINOR ASA
Performance |
| Timeline |
| Visa Class A |
| EQUINOR ASA |
Visa and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and EQUINOR
The main advantage of trading using opposite Visa and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| EQUINOR vs. Addus HomeCare | EQUINOR vs. Commonwealth Bank of | EQUINOR vs. Chiba Bank Ltd | EQUINOR vs. Pintec Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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