Correlation Between Visa and Embracer Group
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By analyzing existing cross correlation between Visa Class A and Embracer Group AB, you can compare the effects of market volatilities on Visa and Embracer Group 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 Embracer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Embracer Group.
Diversification Opportunities for Visa and Embracer Group
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Embracer is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Embracer Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embracer Group 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 Embracer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embracer Group AB has no effect on the direction of Visa i.e., Visa and Embracer Group go up and down completely randomly.
Pair Corralation between Visa and Embracer Group
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.15 times more return on investment than Embracer Group. However, Visa Class A is 6.87 times less risky than Embracer Group. It trades about 0.25 of its potential returns per unit of risk. Embracer Group AB is currently generating about -0.05 per unit of risk. If you would invest 31,612 in Visa Class A on December 1, 2024 and sell it today you would earn a total of 4,659 from holding Visa Class A or generate 14.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Visa Class A vs. Embracer Group AB
Performance |
Timeline |
Visa Class A |
Embracer Group AB |
Visa and Embracer Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Embracer Group
The main advantage of trading using opposite Visa and Embracer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Embracer Group 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 Embracer Group will offset losses from the drop in Embracer Group's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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