Correlation Between Visa and MGMCHI
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By analyzing existing cross correlation between Visa Class A and MGMCHI 475 01 FEB 27, you can compare the effects of market volatilities on Visa and MGMCHI 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 MGMCHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and MGMCHI.
Diversification Opportunities for Visa and MGMCHI
Good diversification
The 3 months correlation between Visa and MGMCHI is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and MGMCHI 475 01 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGMCHI 475 01 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 MGMCHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGMCHI 475 01 has no effect on the direction of Visa i.e., Visa and MGMCHI go up and down completely randomly.
Pair Corralation between Visa and MGMCHI
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.32 times more return on investment than MGMCHI. However, Visa is 1.32 times more volatile than MGMCHI 475 01 FEB 27. It trades about 0.08 of its potential returns per unit of risk. MGMCHI 475 01 FEB 27 is currently generating about 0.02 per unit of risk. If you would invest 21,128 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 10,380 from holding Visa Class A or generate 49.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.52% |
| Values | Daily Returns |
Visa Class A vs. MGMCHI 475 01 FEB 27
Performance |
| Timeline |
| Visa Class A |
| MGMCHI 475 01 |
Visa and MGMCHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and MGMCHI
The main advantage of trading using opposite Visa and MGMCHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, MGMCHI 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 MGMCHI will offset losses from the drop in MGMCHI's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| MGMCHI vs. Evolution Gaming Group | MGMCHI vs. Fomento Economico Mexicano | MGMCHI vs. Contagious Gaming | MGMCHI vs. Playtika Holding Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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