Correlation Between Visa and SIMON
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By analyzing existing cross correlation between Visa Class A and SIMON PPTY GROUP, you can compare the effects of market volatilities on Visa and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and SIMON.
Diversification Opportunities for Visa and SIMON
Excellent diversification
The 3 months correlation between Visa and SIMON is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Visa i.e., Visa and SIMON go up and down completely randomly.
Pair Corralation between Visa and SIMON
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.07 times more return on investment than SIMON. However, Visa is 2.07 times more volatile than SIMON PPTY GROUP. It trades about 0.08 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.02 per unit of risk. If you would invest 22,626 in Visa Class A on September 1, 2024 and sell it today you would earn a total of 8,882 from holding Visa Class A or generate 39.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.9% |
| Values | Daily Returns |
Visa Class A vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Visa Class A |
| SIMON PPTY GROUP |
Visa and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and SIMON
The main advantage of trading using opposite Visa and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| SIMON vs. Grupo Televisa SAB | SIMON vs. Old Republic International | SIMON vs. Crombie Real Estate | SIMON vs. Mangazeya Mining |
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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