Correlation Between Visa and VICI Properties
Can any of the company-specific risk be diversified away by investing in both Visa and VICI Properties 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 VICI Properties 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 VICI Properties, you can compare the effects of market volatilities on Visa and VICI Properties 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 VICI Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and VICI Properties.
Diversification Opportunities for Visa and VICI Properties
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Visa and VICI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and VICI Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VICI Properties 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 VICI Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VICI Properties has no effect on the direction of Visa i.e., Visa and VICI Properties go up and down completely randomly.
Pair Corralation between Visa and VICI Properties
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.56 times more return on investment than VICI Properties. However, Visa Class A is 1.79 times less risky than VICI Properties. It trades about 0.49 of its potential returns per unit of risk. VICI Properties is currently generating about 0.1 per unit of risk. If you would invest 31,440 in Visa Class A on November 2, 2024 and sell it today you would earn a total of 2,865 from holding Visa Class A or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. VICI Properties
Performance |
| Timeline |
| Visa Class A |
| VICI Properties |
Visa and VICI Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and VICI Properties
The main advantage of trading using opposite Visa and VICI Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, VICI Properties 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 VICI Properties will offset losses from the drop in VICI Properties' long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| VICI Properties vs. Broadstone Net Lease | VICI Properties vs. Armada Hflr Pr | VICI Properties vs. Brightspire Capital | VICI Properties vs. Safehold |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |