Correlation Between Visa and SANDS
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By analyzing existing cross correlation between Visa Class A and SANDS CHINA LTD, you can compare the effects of market volatilities on Visa and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and SANDS.
Diversification Opportunities for Visa and SANDS
Pay attention - limited upside
The 3 months correlation between Visa and SANDS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of Visa i.e., Visa and SANDS go up and down completely randomly.
Pair Corralation between Visa and SANDS
Taking into account the 90-day investment horizon Visa Class A is expected to generate 3.88 times more return on investment than SANDS. However, Visa is 3.88 times more volatile than SANDS CHINA LTD. It trades about 0.34 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about -0.19 per unit of risk. If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Visa Class A vs. SANDS CHINA LTD
Performance |
| Timeline |
| Visa Class A |
| SANDS CHINA LTD |
Visa and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and SANDS
The main advantage of trading using opposite Visa and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| SANDS vs. AerSale Corp | SANDS vs. Daily Journal Corp | SANDS vs. Zane Interactive Publishing | SANDS vs. Alaska Air Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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