Correlation Between Visa and KROGER
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By analyzing existing cross correlation between Visa Class A and KROGER 465 percent, you can compare the effects of market volatilities on Visa and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and KROGER.
Diversification Opportunities for Visa and KROGER
Very good diversification
The 3 months correlation between Visa and KROGER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and KROGER 465 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 465 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 465 percent has no effect on the direction of Visa i.e., Visa and KROGER go up and down completely randomly.
Pair Corralation between Visa and KROGER
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.43 times more return on investment than KROGER. However, Visa Class A is 2.34 times less risky than KROGER. It trades about 0.09 of its potential returns per unit of risk. KROGER 465 percent is currently generating about 0.01 per unit of risk. If you would invest 20,975 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 10,533 from holding Visa Class A or generate 50.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.3% |
| Values | Daily Returns |
Visa Class A vs. KROGER 465 percent
Performance |
| Timeline |
| Visa Class A |
| KROGER 465 percent |
Visa and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and KROGER
The main advantage of trading using opposite Visa and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| KROGER vs. NetEase | KROGER vs. Rave Restaurant Group | KROGER vs. The Cheesecake Factory | KROGER vs. The Wendys Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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