Correlation Between Visa and NEXEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and NEXEN INC 64, you can compare the effects of market volatilities on Visa and NEXEN 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 NEXEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and NEXEN.
Diversification Opportunities for Visa and NEXEN
Poor diversification
The 3 months correlation between Visa and NEXEN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and NEXEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXEN INC 64 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 NEXEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXEN INC 64 has no effect on the direction of Visa i.e., Visa and NEXEN go up and down completely randomly.
Pair Corralation between Visa and NEXEN
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.53 times more return on investment than NEXEN. However, Visa is 1.53 times more volatile than NEXEN INC 64. It trades about 0.4 of its potential returns per unit of risk. NEXEN INC 64 is currently generating about 0.02 per unit of risk. If you would invest 28,134 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 3,336 from holding Visa Class A or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.43% |
| Values | Daily Returns |
Visa Class A vs. NEXEN INC 64
Performance |
| Timeline |
| Visa Class A |
| NEXEN INC 64 |
Visa and NEXEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and NEXEN
The main advantage of trading using opposite Visa and NEXEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, NEXEN 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 NEXEN will offset losses from the drop in NEXEN'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |