Correlation Between Visa and USANA Health
Can any of the company-specific risk be diversified away by investing in both Visa and USANA Health 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 USANA Health 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 USANA Health Sciences, you can compare the effects of market volatilities on Visa and USANA Health 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 USANA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and USANA Health.
Diversification Opportunities for Visa and USANA Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and USANA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and USANA Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USANA Health Sciences 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 USANA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USANA Health Sciences has no effect on the direction of Visa i.e., Visa and USANA Health go up and down completely randomly.
Pair Corralation between Visa and USANA Health
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.56 times more return on investment than USANA Health. However, Visa Class A is 1.78 times less risky than USANA Health. It trades about 0.11 of its potential returns per unit of risk. USANA Health Sciences is currently generating about -0.07 per unit of risk. If you would invest 26,932 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 4,576 from holding Visa Class A or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. USANA Health Sciences
Performance |
| Timeline |
| Visa Class A |
| USANA Health Sciences |
Visa and USANA Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and USANA Health
The main advantage of trading using opposite Visa and USANA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, USANA Health 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 USANA Health will offset losses from the drop in USANA Health's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| USANA Health vs. J J Snack | USANA Health vs. Lancaster Colony | USANA Health vs. Seneca Foods Corp | USANA Health vs. Seneca Foods Corp |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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