Correlation Between Visa and Xcelmobility
Can any of the company-specific risk be diversified away by investing in both Visa and Xcelmobility 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 Xcelmobility 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 Xcelmobility, you can compare the effects of market volatilities on Visa and Xcelmobility 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 Xcelmobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Xcelmobility.
Diversification Opportunities for Visa and Xcelmobility
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Xcelmobility is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Xcelmobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xcelmobility 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 Xcelmobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xcelmobility has no effect on the direction of Visa i.e., Visa and Xcelmobility go up and down completely randomly.
Pair Corralation between Visa and Xcelmobility
Taking into account the 90-day investment horizon Visa is expected to generate 117.55 times less return on investment than Xcelmobility. But when comparing it to its historical volatility, Visa Class A is 107.18 times less risky than Xcelmobility. It trades about 0.09 of its potential returns per unit of risk. Xcelmobility is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Xcelmobility on August 29, 2024 and sell it today you would lose (0.01) from holding Xcelmobility or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Xcelmobility
Performance |
| Timeline |
| Visa Class A |
| Xcelmobility |
Visa and Xcelmobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Xcelmobility
The main advantage of trading using opposite Visa and Xcelmobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Xcelmobility 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 Xcelmobility will offset losses from the drop in Xcelmobility's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Xcelmobility vs. Pushfor Investments | Xcelmobility vs. AB International Group | Xcelmobility vs. On4 Communications | Xcelmobility vs. Tautachrome |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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