Correlation Between Visa and Exicure
Can any of the company-specific risk be diversified away by investing in both Visa and Exicure 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 Exicure 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 Exicure, you can compare the effects of market volatilities on Visa and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Exicure.
Diversification Opportunities for Visa and Exicure
Very weak diversification
The 3 months correlation between Visa and Exicure is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Visa i.e., Visa and Exicure go up and down completely randomly.
Pair Corralation between Visa and Exicure
Taking into account the 90-day investment horizon Visa is expected to generate 32.68 times less return on investment than Exicure. But when comparing it to its historical volatility, Visa Class A is 21.09 times less risky than Exicure. It trades about 0.33 of its potential returns per unit of risk. Exicure is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Exicure on August 29, 2024 and sell it today you would earn a total of 2,528 from holding Exicure or generate 1048.96% 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. Exicure
Performance |
| Timeline |
| Visa Class A |
| Exicure |
Visa and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Exicure
The main advantage of trading using opposite Visa and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Exicure vs. Ikena Oncology | Exicure vs. Eliem Therapeutics | Exicure vs. HCW Biologics | Exicure vs. RenovoRx |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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