Correlation Between Visa and STANLN
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By analyzing existing cross correlation between Visa Class A and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on Visa and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and STANLN.
Diversification Opportunities for Visa and STANLN
Average diversification
The 3 months correlation between Visa and STANLN is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of Visa i.e., Visa and STANLN go up and down completely randomly.
Pair Corralation between Visa and STANLN
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.69 times more return on investment than STANLN. However, Visa is 2.69 times more volatile than STANLN 7767 16 NOV 28. It trades about 0.09 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about -0.01 per unit of risk. If you would invest 24,807 in Visa Class A on September 14, 2024 and sell it today you would earn a total of 6,667 from holding Visa Class A or generate 26.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 53.53% |
| Values | Daily Returns |
Visa Class A vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
| Visa Class A |
| STANLN 7767 16 |
Visa and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and STANLN
The main advantage of trading using opposite Visa and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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