Correlation Between Visa and PT Winner
Can any of the company-specific risk be diversified away by investing in both Visa and PT Winner 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 PT Winner 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 PT Winner Nusantara, you can compare the effects of market volatilities on Visa and PT Winner 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 PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and PT Winner.
Diversification Opportunities for Visa and PT Winner
Pay attention - limited upside
The 3 months correlation between Visa and WINR is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Visa i.e., Visa and PT Winner go up and down completely randomly.
Pair Corralation between Visa and PT Winner
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.23 times more return on investment than PT Winner. However, Visa Class A is 4.27 times less risky than PT Winner. It trades about 0.35 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about -0.1 per unit of risk. If you would invest 29,129 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 2,536 from holding Visa Class A or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. PT Winner Nusantara
Performance |
| Timeline |
| Visa Class A |
| PT Winner Nusantara |
Visa and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and PT Winner
The main advantage of trading using opposite Visa and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, PT Winner 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 PT Winner will offset losses from the drop in PT Winner's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| PT Winner vs. Garuda Metalindo Tbk | PT Winner vs. Weha Transportasi Indonesia | PT Winner vs. HK Metals Utama | PT Winner vs. Kedawung Setia Industrial |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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