Correlation Between Visa and KINDER
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By analyzing existing cross correlation between Visa Class A and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Visa and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and KINDER.
Diversification Opportunities for Visa and KINDER
Good diversification
The 3 months correlation between Visa and KINDER is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Visa i.e., Visa and KINDER go up and down completely randomly.
Pair Corralation between Visa and KINDER
Taking into account the 90-day investment horizon Visa is expected to generate 52.82 times less return on investment than KINDER. But when comparing it to its historical volatility, Visa Class A is 70.42 times less risky than KINDER. It trades about 0.09 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11,120 in KINDER MORGAN ENERGY on September 3, 2024 and sell it today you would lose (338.00) from holding KINDER MORGAN ENERGY or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.79% |
| Values | Daily Returns |
Visa Class A vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| Visa Class A |
| KINDER MORGAN ENERGY |
Visa and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and KINDER
The main advantage of trading using opposite Visa and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER'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 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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