Correlation Between Visa and UCHUMI SUPERMARKET
Can any of the company-specific risk be diversified away by investing in both Visa and UCHUMI SUPERMARKET at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and UCHUMI SUPERMARKET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and UCHUMI SUPERMARKET LTD, you can compare the effects of market volatilities on Visa and UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and UCHUMI SUPERMARKET.
Diversification Opportunities for Visa and UCHUMI SUPERMARKET
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and UCHUMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and UCHUMI SUPERMARKET LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCHUMI SUPERMARKET LTD has no effect on the direction of Visa i.e., Visa and UCHUMI SUPERMARKET go up and down completely randomly.
Pair Corralation between Visa and UCHUMI SUPERMARKET
If you would invest 20,975 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 10,533 from holding Visa Class A or generate 50.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Visa Class A vs. UCHUMI SUPERMARKET LTD
Performance |
| Timeline |
| Visa Class A |
| UCHUMI SUPERMARKET LTD |
Visa and UCHUMI SUPERMARKET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and UCHUMI SUPERMARKET
The main advantage of trading using opposite Visa and UCHUMI SUPERMARKET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET will offset losses from the drop in UCHUMI SUPERMARKET's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| UCHUMI SUPERMARKET vs. YETU MICROFINANCE PLC | UCHUMI SUPERMARKET vs. CRDB BANK LTD | UCHUMI SUPERMARKET vs. NATION MEDIA GROUP | UCHUMI SUPERMARKET vs. MWALIMU MERCIAL BANK |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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