Correlation Between Visa and KINDER
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By analyzing existing cross correlation between Visa Class A and KINDER MORGAN INC, 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
Very good diversification
The 3 months correlation between Visa and KINDER is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN 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 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 INC 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 Class A is expected to generate 1.06 times more return on investment than KINDER. However, Visa is 1.06 times more volatile than KINDER MORGAN INC. It trades about 0.11 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about -0.03 per unit of risk. If you would invest 26,932 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 4,576 from holding Visa Class A or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.34% |
| Values | Daily Returns |
Visa Class A vs. KINDER MORGAN INC
Performance |
| Timeline |
| Visa Class A |
| KINDER MORGAN INC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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