Correlation Between Visa and Xintela AB
Can any of the company-specific risk be diversified away by investing in both Visa and Xintela AB 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 Xintela AB 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 Xintela AB, you can compare the effects of market volatilities on Visa and Xintela AB 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 Xintela AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Xintela AB.
Diversification Opportunities for Visa and Xintela AB
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Xintela is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Xintela AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintela AB 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 Xintela AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintela AB has no effect on the direction of Visa i.e., Visa and Xintela AB go up and down completely randomly.
Pair Corralation between Visa and Xintela AB
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.33 times more return on investment than Xintela AB. However, Visa Class A is 3.01 times less risky than Xintela AB. It trades about 0.16 of its potential returns per unit of risk. Xintela AB is currently generating about -0.18 per unit of risk. If you would invest 27,801 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 3,707 from holding Visa Class A or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Visa Class A vs. Xintela AB
Performance |
| Timeline |
| Visa Class A |
| Xintela AB |
Visa and Xintela AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Xintela AB
The main advantage of trading using opposite Visa and Xintela AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Xintela AB 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 Xintela AB will offset losses from the drop in Xintela AB's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Xintela AB vs. Simris Alg AB | Xintela AB vs. Immunovia publ AB | Xintela AB vs. Sedana Medical AB | Xintela AB vs. KABE Group AB |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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